Market Roundup: Extending Lows

US Tsys extend session lows coinciding with Italy headlines: Govt winning confidence vote despite 5-Star boycott. Tsy 30YY climbed from 3.0775 low ahead the open to 3.1467%.

• Skittish summer markets -- had gapped higher pre-open, latching onto earnings misses f rom MS and JPM, failed to gather momentum as futures retraced ahead this morning's data.
• Little react to earlier data Jun PPI final demand +1.1%, ex-food & energy +0.4%; initial claims come in little higher than expected (244k), continuing claims lower than expected 1.331M.
• Technicals for TYU2: Remain above 117-18, the Jul 8 low. The short-term trend condition is bullish and recent weakness is considered corrective. Key short-term support is at 116-11, the Jun 28 low where a break is required to strengthen a bearish threat. This would signal scope for a deeper retracement. On the upside, attention is on the short-term bull trigger at 120-16+, the Jul 6 high. A break would resume the uptrend.
• Yield curves holding near 16Y inverted lows at -25.042 (-2.302).
• Meanwhile, lead quarterly EDU2 Eurodollar futures remain under pressure, currently 96.32 (-0.065); 3M LIBOR set' surges +0.22829 to new 3.5Y high of 2.74029% -- up +0.31729 total wk to level not seen since late January 2019.
• Mkt pricing appr 80% chance of 100bp rate hike at the July 26-27 FOMC.