Tsys have started to weaken in......>

US TSYS SUMMARY: Tsys have started to weaken in the late morning European

session, though all attention is on Powell Congressional testimony Day 2 (amid a

slew of Fedspeak) and CPI data out at 0830ET.

- Weakness in Tsys with no clear driver, possibly related to move lower in Gilts

amid BOE Carney's discussing cutting countercyclical buffers if needed.

- A decent bull steepening move in the Tsy curve with short end outperformance:

The 2-Yr yield is down 2.8bps at 1.7994%, 5-Yr is down 1.3bps at 1.8127%, 10-Yr

is down 0.9bps at 2.0525%, and 30-Yr is down 0.4bps at 2.5721%.

- EDs also a little stronger in the short end, Whites and Reds up 1.5-2.5 ticks.

- Sep 10-Yr futures (TY) up 2.5/32 at 127-16.5 (L: 127-14 / H: 127-20.5).

- Fed speakers take focus today following the inflation release (with jobless

claims alongside).

- Powell up again at 1000ET, followed by appearances from Williams (1110ET),

Bostic (1215ET), Barkin (1230ET), Quarles and Kashkari (both 1330ET).