T-Note futures have edged back from their...>

US TSYS: T-Note futures have edged back from their early session lows, perhaps

aided by a slight downtick in the JPY crosses that sources have attributed to

corporate hedging flows.

- This comes after a heavy sell off on Wednesday aided by firm ADP & ISM

non-m'fing data in the U.S. morning, with rhetoric from Fed Chair Powell adding

additional weight late in the day, which allowed T-Notes to close at session

lows as yields clocked multi-year highs. Fed Chair Powell noted that "very

accommodative policy is no longer appropriate in the current environment, which

calls for interest rates to "very gradually" move toward neutral. We may go past

neutral, but we're a long way from neutral at this point."

- Eurodollar future volumes are running well above average for this time of day,

although notable outright pieces of flow are virtually non-existent.

- Focus now moves to NFP data, due Friday.

- T-Notes last 117.30, U.S. 10-Year cash Tsy yields last 3.181%.