Treasuries are softer amid a........>

US TSYS SUMMARY: Treasuries are softer amid a tentative recovery in equities

Tuesday, though emphasis on tentative as further trade developments eyed.

- Risk-off flows overnight after the U.S. labelled China a currency manipulator

reversed after Beijing stabilised the CNY; global core FI weakened incl Tsys.

- Sep 10-Yr futures (TY) down 3.5/32 at 129-23.5 (L: 129-15 / H: 130-10.5).

- Curve steepening: The 2-Yr yield is up 1.6bps at 1.5891%, 5-Yr is up 2.6bps at

1.5439%, 10-Yr is up 3.7bps at 1.7445%, and 30-Yr is up 4.1bps at 2.2952%.

- White and Red Eurodollars off 2.5-3 ticks; down 1.5-2 further down the strip.

- S&P Emini futures up 1.0% with dollar trading mixed.

- As we await Philly's Harker (neutral, non-voter) at 1005ET & St Louis` Bullard

(dove, voter) at 1200ET, we got a WSJ interview w SF`s Daly (dove, non-voter).

- While cautiously dovish, Daly indicated that the current situation does not

warrant significantly more monetary support because there is limited evidence

that the U.S. economy is contracting rapidly.

- Note Daly interview took place Monday, before FX manipulator tag put on China.

- Very thin on data (JOLTS is the 'highlight').