Gains in early European trade.......>

US TSYS SUMMARY: Gains in early European trade have fully reversed despite

equities remaining under pressure (US-Sino diplomatic relations; Tech stock

woes, concern over U.S. COVID fiscal relief delays).

- No specific catalyst for Tsy downside (we've seen global safe havens weaken

across the board). Better volumes than last couple of sessions though.

- 5-Yr yields hit all-time lows but now higher on the day.

- The 2-Yr yield is down 0.2bps at 0.1494%, 5-Yr is up 0.3bps at 0.274%, 10-Yr

is up 1bps at 0.5872%, and 30-Yr is up 1.2bps at 1.2431%.

- Sep 10-Yr futures (TY) down 2/32 at 139-18 (L: 139-17 / H: 139-25)

- All eyes on D.C., with Senate's McConnell saying yest that the Republican

fiscal package will be out early next week, and FOMC meeting Tues-Weds.

- Jul Flash PMIs at 0945ET: readings above 50 expected for both Mfg and Svcs.

Stronger-than-expected UK/Eurozone PMIs this morning may have set the tone, but

ultimately the market has ignored these indices today.

- Jun new home sales also eyed at 1000ET.

- No supply today; NY Fed buys ~$8.825B of 2.25Y-4.5Y Tsys.