Fed's Work Far From Done

Treasury futures trading session lows after the bell, curves bear flattening with heavy selling in short end (TUU2>600k, FVU>1.13M, TYU>1.78M), 2YY back over 3.0% to 3.0814% high vs. 2.8154% early low, 2s10s hits inverted low of -35.531.

• Rates reversed early support/stocks gained on relief rally after House Speaker Pelosi's safe landing in Taiwan. Brief negative correlation to rates evaporated in the second half as trifecta of Fed speakers (Daly, Mester, Evans) reminded markets inflation is too high and 75bp hike in Sep not off the table.
• SF Fed Pres Daly stating the Fed's "work is far from done, so we are still resolute and completely united on achieving price stability"; Chicago Fed Evans: "Fifty is a reasonable assessment, but 75 could also be okay" for Sep FOMC; Cleveland Fed Mester: prices are only cooling down "if you squint" and in some pockets.
• Earlier Data: Job openings fall by more than expected in June to 10.698M (cons 11.0M) after a marginally upward revised 11.3M in May. Pushes the ratio of job openings to unemployed down to 1.81, the lowest since Feb off the March high of 1.99.
• Pick-up in data for Wednesday: S&P Global US Services/Composite PMIs (47.0, 47.5 respective ests), Durable Goods Orders (1.9% est), Factory Orders (1.2%), ISM Services (53.5 est)
• Current cross assets: spot Gold reversed direction -9.50 at 1762.67, Crude mild gain: WTI +0.37 at 94.26, stocks marginally lower ESU2 -13.5 at 4107.0
• Currently, 2-Yr yield is up 11bps at 2.9796%, 5-Yr is up 10.2bps at 2.7365%, 10-Yr is up 7.9bps at 2.6522%, and 30-Yr is up 2.8bps at 2.9421%