Outlook for UST markets: Standard Chartered

Quotes from Standard Chartered:

-The Fed minutes are the key US release this week, and US Treasury (UST) investors will likely pay close attention. However, the details are unlikely to prove particularly yield-moving given that the market is already looking ahead to Fed Chair Yellen's testimony to Congress on 24 February as the more ground-breaking event.

-Since the latest monthly employment report , the market has brought forward the point in time that it is fully pricing in a first rate hike from Q4-to Q3-2015.

-Despite the latest comments from Cleveland Fed President Mester, if the minutes do not provide a clear signal that "patience" will be dropped at the next FOMC meeting, we doubt that the UST market will move to fully price in a June hike ahead of Yellen's testimony.