There’s always a great deal of interest around a change of the guard at the Federal Reserve, and Jerome Powell adds a certain spice to this week’s congressional testimony. As we highlighted yesterday, there’s a view that Powell will be much more direct, and more in tune with the practical mechanics of finance. Bretton Woods Research (below) believe that Powell may create a firebreak on US Treasury Yields this week. Equities have been recovering well, and we highlight JPMorgan’s tactical overweight in equities, and underweights in rates and credit. CreditSights highlight that high-yield takes on a life of it own, regardless of fundamentals, which remain good, so they look more closely at investment grade for value, and they see it in the oil and gas sector. We continue to highlight research on Mexico, today from Exotix. The Obrador train has the momentum, but his unrealistic policies are enough to scare off foreign investors, Exotix write. Finally, an interesting piece on market noise (otherwise known as newswire stories). Cuemacro have designed a model that can capture uncorrelated returns from Bloomberg News stories. Worth a look.