Business

Following last night's across the board build in inventories from API, DOE reported a surprising 750k drawdown (much less than the 3.2mm build expected). However, across the rest of the complex - inventories rose: Cushing +523 build (13th week in a row), Gasoline +1.26mm build, and Distillates +1.28mm build (first in 4 weeks). Having tumbled early on from Yellen's undovishness, crude spiked on the headline draw (back above $29) but is struggling to hold gains.

From API:

Rumors of ECB monetization (which would be highly problematic in the new "bail-in" world) and old news of the emergency debt-buyback plan have sparked an epic ramp in Deutsche Bank's stock this morning (+11% - the most since Oct 2011). This extreme volatility is, however, eerily reminiscent of 2007/8 when headline hockey sparked pumps and dumps on a daily basis in Lehman stock... until it was all over.

"Deutsche Bank is fixed"?

Or is it?

Things are already fading...

This is probably not what the bulls wanted to hear. Moments ago Goldman released its take on Yellen's testimony set to begin momentarily, and contrary from a dovish take the bank which has spawned more central bankers in world history than any other, said that her prepared remarks "suggest additional hikes remain FOMC baseline "

Goldman's full take:

Fed Chair Yellen's Prepared Remarks Suggest Additional Hikes Remain FOMC Baseline

Fed Chair Yellen will be presenting her semi-annual monetary policy testimony - sometimes called the "Humphrey-Hawkins" testimony - today (House Financial Services Committee) and tomorrow (Senate Banking Committee). Her prepared remarks offered little new information over the January FOMC Statement but the Q&A will likely be the most market-moving as politicians likely demand she "get back to work" for the good of the nation's shareholders.

Live Feed (testimony is due to begin at 10ET)

For a Yellen testimony which explicitly focused on "financial conditions" which have become "less supportive of growth" as one of the chief risks facing the Fed's rate hike philosophy, we were surprised to find that the list of troubling developments "related to financial stability" as laid out in the Fed's Monetary Policy Report to Congress which accompanies the chairwoman's testimony, was relatively sparse.