Treasury Secretary Janet Yellen, Council of Economic Advisers Chair Cecila Rouse, and Office of Management and Budget Director Shalanda Young are delivering their testimony before the House Appropriations Financial Services Subcommittee.

Treasury futures are climbing higher across the board in late trade as a result.

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The prepared text came out earlier than expected: Yellen was expected to say, "we have used important tools to act quickly to prevent contagion. And they are tools we could use again," she said in prepared testimony to Congress.

"The strong actions we have taken ensure that Americans' deposits are safe. Certainly, we would be prepared to take additional actions if warranted."

Key notes

Prepared for additional deposit actions `if warranted'.
Strong actions have been taken to ensure deposits are safe.

Important anti-contagion tools could be used again.
Seeing reduced pressure on supply chains, lower shipping costs - us house appropriations subcommittee hearing.
Easing supply pressures will eventually pass through to lower inflation.

Front-month 30Y futures tap 132-01, 30Y yield 3.6690% low, while yield curves continue to climb off deeper inverted levels.

Implied rate cuts by year end accelerate with Dec'23 cumulative -86.6 at 3.946%, Fed Terminal slips to 4.89% in May.

Meanwhile, Wednesday's testimony from Treasury Secretary Yellen weighed on stocks after stating the Tsy is "not considering broad increase in deposit insurance", at odds with Chairman Powell's comment supportive of regional banks.