February 07, 2023 13:29 GMT
What to Watch: Fed Chairman Powell, Corporate Supply, Tsy 3Y Sale
US TSYS
Tsys trading mixed w/ bonds paring gains trading mildly weaker now (30YY 3.6953 +.0217), 2s10s curve bouncing off Mon's new 40Y inverted low (-84.734). Incoming corporate bond issuance (Intel 7pt jumbo) spurred round of prop and rate lock selling across the curve.
- Fed comments on last Fri's surge in Jan jobs have been muted, so main focus on Fed Chairman Powell's Economic Club of Washington interview (no text) at 1230ET (Fed site says 1240ET) Link: Economic Club of DC.
- CNBC interview headlines of MN Fed Kashkari earlier:
- LABOR MARKET IS TOO HOT, MAKES IT HARDER TO BRING INFLATION DOWN
- WE MAY HAVE TO HOLD RATES AT A HIGHER LEVEL FOR LONGER
- I AM NOT FORECASTING A RECESSION
- Fed VC Barr on financial inclusion, text and moderated Q&A at 1400ET
- US Tsy $40B 3Y Note auction (91282CGL9) at 1300ET
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