OVERNIGHT NEWS
* UST 10y drops 4bp to 1.328% after Powell reiterates pledge for continued bond buying with economy long-way from employment/inflation goals; GBP races higher vs USD, EUR on triggering of stop losses, option related flow
* Day ahead: Fed chair Powell repeats testimony to House, vice-chair Clarida discusses economic outlook, BoE’s Bailey testimony and S. Africa budget
* Germany 4Q final GDP revised up from 0.1% to 0.3% qoq (-2.7% yoy) private consumption -3.3% qoq, government spending -0.5%, capital investment +1.0%
* RBNZ leaves OCR unch at 0.25% and asset purchase program at NZD100bn, NZD advances to trend high 0.7384/USD
* Nikkei -1.6%, EUR 10y IRS -1bp at -0.01%, Brent -0.5% at $65.1/b, Gold +0.2% at $1,810/oz
GBP/USD racing towards 2018 high
COP has also suffered on the back of bond outflows, but with rates coming back we could see a reversal. Citi Trading (Cedric) think current USDCOP levels offer a good selling opportunity, targeting a return towards the 3500-3550 area, while keeping some powder dry in case we see an extended move towards 3650.