Cantella Rates and Credit Dashboard--12/1/21

Fed Chair Powell ditched the word transitory and is more Hawkish. He said that he favors ending the taper a few months earlier, and the economy is strong. Keep in mind , ending QE a few months earlier is not tightening , after all, it’s just the removal of some accommodation??The Curve is flattening with 2’s to 10’s at +89 bps.?and 5’s to 30 year at +61 bps.?10’s open at 1.47%. Senator Betsy Warren-D -Mass.?Pressed Powell in maddening detail to say he would defer to the Supervisory Vice Chair on regulatory matters, no matter who is appointed, which seemed odd.?Powell said the Supervisory VC sets the regulatory agenda, as proscribed by law, but regulatory changes must be bought before the board and approved by the full board. He declined to promise in advance he would ALWAYS vote in support of the VC for supervision. This was premediated as this morning the WSJ reported Richard Cordray , Warren’s protégé and former director of the CFPB , is the frontrunner for the supervisory VC post.?Confirmation is bound to be difficult as Cordray has virtually no support from Republicans.?Expect Corp issuance to open up today as spreads have stabilized for now.?IG 36 at 56.?Have a nice day.?

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