Halister News

(Bloomberg) -- Wave of buying emerges in Treasury futures, including a block trade, shortly after reports that Trump aides are said to deliver a shortlist for the next Fed chair, including Yellen, Cohn, Warsh and Powell, though with Yellen said not to be favored.

• In 10y note futures, 9.5k trade in 1-minute between 125-13/15+, U.S. 10y yield drops 1.25bps to 2.31%, as belly of the curve outperforms, pointing to a move dovish Fed outlook
• Block trade seen in TYZ7 with 3,150 trading at 125-14+, printing at 8:43am HKT
• Move is an extension from Tuesday with focus on Politico report that Treasury Secretary Steven Mnuchin favors Powell as next Fed chair
• Eurodollar futures push to day’s high, with the strip bull flattening
• Trump’s advisers have given him a final list of people they’re recommending as candidates to lead the Federal Reserve and have ended the search, according to people familiar with the matter
• NOTE: Some information comes from rates trader familiar with the transactions who asked not to be identified because they are not authorized to speak publicly

To contact the reporter on this story: Stephen Spratt in London at sspratt3@bloomberg.net To contact the editors responsible for this story: Ven Ram at vram1@bloomberg.net Patricia Lui