Tight Ranges On Wednesday, With Little To Assess

T-Notes trade -0-01 at 131-28+, marginally below late NY levels. There has been nothing in the way of reaction to recent headline flow which noted that the CDC panel looking at the J&J COVID shot concluded its sitting without a vote on the matter, noting that more data is needed, which effectively elongates the U.S. halt re: the use of the vaccine.

• As a reminder, the space finished lower on Wednesday, with the curve a touch steeper as benchmarks cheapened across the curve. The 20-Year sector provided marginal underperformance, cheapening by a little over 2.0bp on the day. Fed Chair Powell headlined a raft of Fedspeak on Wednesday, reaffirming his recent guidance on interest rates, while flagging that the Fed will start tapering its Tsy purchases "well" ahead of the first rate hike. He then went on to note that he didn't think the Fed would sell their bond holdings back to the market. Powell also pointed to excess focus on the Fed's dot plot and stressed the outcome based nature of monetary policy at present.
• Elsewhere, geopolitical matters remain at the fore, with RTRS sources reporting that the U.S. cancelled the deployment of two warships to the Black Sea.
• Expectations surrounding corporate issuance from some of the top financial names (post-earnings which got underway on Wednesday) helped tighten longer dated swap spreads.
• Focus on Coinbase's inaugural round of trading pressured the equity space during the second half of NY trade, which allowed Tsys to find a base.