Treasuries hardly moved upon news...>

US TSYS SUMMARY: Treasuries hardly moved upon news that Jay Powell is the Fed

Chair nominee as the announcement had been very well telegraphed.

- The yield curve has risen by around 0.5bp across the curve and the 10Y UST

yield is at 2.35%. Swap spreads are also little moved in what has been a fairly

quiet overnight trading session.

- One interesting movement was the rise in Bunds immediately after the Bund

contract opened in Europe, which was accompanied by a drop in the T-note futures

contract. As a consequence, the 10Y Bund-Tsy spread has widened from 197.3bp to

199.1bp today. 

- Investors are looking forward to the payroll report later today and the

potential recovery from the storms that hit the southern States. The market

might also start preparing for the 3Y, 10Y and Bond re-funding auctions next

week.

- There was some good buying in the traditional Bond and Ultra Bond futures

contracts overnight but 3Y paper is weak, weighed by the lack of any reduction

in coupon issuance in the re-funding announcement.