Post-Data Sell-Off, New 22 Year Inverted Yld Curve Lows

Treasury futures continue to extend lows, curves bear flattening with outsized selling in short end, 2YY hits 3.1980% high, 2s10s hits inverted low of -36.195 lvls not seen since Sep 2000, while Bond yield hit 3.0778% high has scaled back to 3.0514%.

• US ISM and Durable Goods beat expectations, while Final services PM revised a touch lower, but still remains in contraction territory. Hawkish Fed messaging continues: StL Fed Bullard on CNBC earlier echoing Daly and Mester's messaging: Fed job "nowhere near" complete in reining in inflation while needing months of "convincing evidence" that infl has peaked.
• Meanwhile, US Tsy annc fourth consecutive reduction in its quarterly sales of longer-term debt as borrowing needs diminished and signaled a pause going forward. Reductions in short-end auction sizes was not widely expected (2s, 3s), the rest was more or less in line by the looks of it.
  
• Data on tap for Thursday: Challenger Job Cuts YoY, Initial Jobless Claims (260k est), Continuing Claims (1.383M est). Larger focus on Friday's July employment report (+250k est vs. +372K prior).
• Current cross assets: spot Gold reversed early gains currently -1.49 at 1758.90, Crude weaker: WTI -0.72 at 93.70, stocks near recent session highs ESU2 +29.50 at 4123.25.
• Currently, 2-Yr yield is up 11bps at 3.1612%, 5-Yr is up 8.2bps at 2.9347%, 10-Yr is up 6.9bps at 2.8177%, and 30-Yr is up 5.4bps at 3.0604%.