10Y Outperforming As Risk-Off Themes Resume

Treasuries have strengthened overnight Tuesday, with 10Y yields touching the lowest levels in 8 sessions (1.215%) as equities retraced.

• The 2-Yr yield is down 1bps at 0.1993%, 5-Yr is down 3.2bps at 0.7296%, 10-Yr is down 3.8bps at 1.2267%, and 30-Yr is down 3.1bps at 1.8965%. Sep 10-Yr futures (TY) up 6.5/32 at 134-17 (L: 134-06.5 / H: 134-19.5).
• Similar risk-off themes to Monday have brought S&P futures off highs and the USD a little stronger: COVID concerns (New Zealand lockdown in focus) and Afghanistan uncertainty.
• Fed Chair Powell hosts a town hall event with educators at 1330ET (with text), and will take questions. Given the nature of the event it's doubtful there will be much market impact, but one never knows. Also, Minn Fed's Kashkari speaks at 1545ET.
• AdvanceJul retail sales feature at 0830ET (seen contracting on a M/M basis on both headline and ex-auto+gas). July industrial production is out at 0915ET, with business inventories at 1000ET alongside NAHB house prices.
• In supply: $70B of 42-/57-day bill auctions at 1130ET. NY Fed buys ~$1.225B of 7.5-30Y TIPS.