Initial topside impetus moderated as T-Notes topped out at 109-29+ and stabilised just shy of that level. E-mini futures oscillated between gains and losses amid heightened volatility in China's equity markets, staging an about-face after a spell of early-doors weakness. The ongoing debate on Fed terminal rate level may have factored into the price action, although swaps market pricing was little changed.

• There was little in the way of FI-specific headline flow in Asia-Pac hours, but regional players digested Monday's surge in gilts, stemming from the promise of stabilisation in UK political landscape.
• When this is being typed, T-Notes trade +0-04 at 109-27+, while Eurodollars trade -0.5 to +1.5 tick through the reds.
• Cash curve sits lower and runs flatter, with yields last seen 0.6-3.3bp as 10s outperform. The marginal tightening in 5-Year/30-Year Tsy yield spread brought it close to the breakeven level.
• Local data highlights today include Conf. Board Consumer Confidence & Richmond Fed M'fing Index, while Fed's Waller will speak at a conference in Las Vegas. Also coming up is an auction of 2-Year Tsys.