Tsys were drifting around the lower....>

US TSY/RECAP: Tsys were drifting around the lower half of the range by the bell,

although the space was subjected to another light volume session.

- Fed Chair Powell broke little new ground in the semi-annual MonPol testimony.

- There was a brief period of selling down to session lows then steady buying

around the time that Powell mentioned protectionist trade policies. Participants

stayed close to the sidelines, two-way flow was observed, with some deal-tied

hedging across the curve ($4.6bn MUFG 6-parter covering 3-20 Year space was

launched late); two-way prop flows and option-tied hedging was also seen.

- Fed Chair Powell will appear in front of the House Panel tomorrow, with Fed's

Quarles due to speak on Thursday & Bullard due up on Friday ahead of the

blackout period which goes into force over the weekend.

- T-Notes last at 120.03+, U.S. 10-Year cash Tsy yields closed at 2.860%.