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StL Fed Bullard: 100Bp Hikes By July

US TSYS
Tsy futures extending session lows as StL Fed Bullard reiterates stance on higher/faster rate hikes to address growing inflation, would like to see 100bp in hikes by July, Fed not moving fast enough.
  • Fed does watch markets: Bullard said the Fed must follow through and ratify recent market pricing/expectations over faster/higher rate hikes (markets were pricing in 150bp by year end early last Friday).
  • Bullard Wants balance sheet run-off in second quarter.
  • On supply chain drag, Bullard said a feed-back loop may last into 2023.
  • Still well off Fri's high of 2.3506%, 30YY currently +.0331 at 2.2716%; 10YY +.0434 at 1.9805%.
  • Yield curves back to bear flattening, 5s30s -1.920 at 36.318.

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