The Powell effect was not just......>

US TSYS SUMMARY: The Powell effect was not just short-lived but his upbeat

assessment of the economy hung over the market in Asia, with a renewed bout of

selling.

- Weakness was concentrated at the front end of the curve, the longer end may

need to wait beyond the 0.12Y rise in the Bloomberg-Barclays Tsy index that

should create flows towards 1500EST today. 

- The 2Y yield has hit another post-crisis yield high at 2.282%, although it has

moderated a bp since reaching that high.

- Swap spreads are little changed although swap flows have been quite elevated

in the 10Y+ section of the curve, mostly playing flatteners.

- Later today sees the second reading of Q4 GDP and MNI Chicago PMI. There is no

coupon supply.

- Neel Kashkari, one of the biggest doves on the FOMC, is due to participate in

a round table about wages