The risk-off tone remains after.....>

US TSYS SUMMARY: The risk-off tone remains after Monday's sharp late reversals

in bonds/equities, weighed down by continued China-US geopolitical rhetoric

(Beijing said will put sanctions on Lockheed Martin).

- The 2-Yr yield is up 0.2bps at 0.153%, 5-Yr is up 0.3bps at 0.2881%, 10-Yr is

up 0.8bps at 0.6266%, and 30-Yr is up 0.9bps at 1.3167%. Sep 10-Yr futures (TY)

up 2.5/32 at 139-09.5, tight range (L: 139-07.5 / H: 139-13).

- Likewise, S&P emini futs have traded within 23 point range overnight,

seemingly waiting for next catalyst. Could be earnings (JPM, WFC, C, DAL to

report today); could be COVID (with Monday throwing up a moderation in state

cases post-weekend but a renewed lockdown in California).

- Four Fed speakers lined up: Brainard and Bostic (separately at 1400ET),

Bullard at 1430ET, Harker at 1530ET. Jun inflation data at 0830ET also eyed.

- Notable trades overnight included TYU0 137.00p bought for 6 in 35k - short

cover from entered put spread of late, with that strike mostly sold.

- $70bln of 42-/119-Day bill sale at 1130ET; $34bln of 52-Wk at 1300ET.

- Biggest day of NYFed purchases of the week: $12.825B short-end Tsys.