Front End Yields Remain More Vulnerable Since a December Rate Cut by Fed Still Not Fully Priced in.

Front end yields remain more vulnerable since a December rate cut by the Fed is still not fully priced in. Chair Powell is appearing in a moderated discussion later today and will be closely watched for some clues. The German curve bear flattened with net daily changes varying between 4.2 bps (2-yr) to 0.6 bps (30-yr). It’s been the first gain for the likes of the 10-yr (+2 bps) in 10 (!) trading days. We’re wary to call it the start of a bottoming out yet but it may be a first sign.