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What to Watch: Chairman Powell Resumes; ADP Data; 10Y Sale

US TSYS
  • Tsys trading mixed ahead the NY session open, carry over pressure in the short end after Tuesday's hawkish monetary policy testimony from Fed Chairman Powell. Curves extending inversion as a result: 2s10s taps -107.945, the lowest level since 1981 while 2Y yields climb to 5.0801% high (mid-2007 level).
  • Focus on second day of testimony to Congress from Chairman Powell at 1000ET for any additional items to glean forward policy before the Federal Reserve enters media blackout at midnight Friday.
  • Chance that Richmond Federal Reserve President Barkin may give additional insight as he discusses labor market, answers questions (no text) this morning at 0800ET.
  • Aside from monetary policy, salient economic data is ADP Employment Change (106k prior, 200k estimate) at 0815ET, that may give some insight ahead of Friday's Non-Farm Payrolls release (517k prior, 224k est) though the correlation is questionable.
  • Treasury auctions today:
  • Mar-08 1130 US Tsy $36B 17W Bill auction
  • Mar-08 1300 US Tsy $32B 10Y Note auction re-open (91282CGM7)

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