What to Watch: Housing Data, TIC Flows, US/China Tension Simmer

Tsys extending gains into the NY open, yield curves marginally flatter after scaling back last week's steepening last Friday. Modest overnight volumes to start the week (TYU2<230k). Relative calm ahead limited data at 0830ET (prior, est):

• Empire Manufacturing (11.1, 5), followed by
  
• NAHB Housing Market Index (55, 55) at 1000ET and
• Aug-15 1600 Net Long-term TIC Flows ($155.3B, --); Net ($182.5B, --) 1600ET
• Fed speakers:
  • Fed Gov Waller makes opening remarks at Fed's Summer Workshop on Money, Banking, Payments, and Finance, 1050ET.
• Treasury auctions
  • US Tsy $54B 13w, $42B 26W bill auctions at 1130ET; Later in the week
  • $15B 20Y Bond (912810TK4) on Wednesday
  • $8B 30Y TIPS reopen (912810TE8) next Thursday.
• Geopol: Eye on brewing US/China tension after second US Congressional Delegation (CODEL) visit to Taiwan in August has sparked another round of Chinese military drills off the coast of the island.
• Meanwhile, US and Indonesia conclude the Super Garuda Shield 2022 military exercises, held over the latter’s Sumatra and Riau islands over the past two weeks. The drills have included forces from Japan, Australia, and Singapore, and the largely amphibious exercises were the largest since the Garuda Shield drills began in 2007.
• Separately, China Shocks With Rate Cut as Data Show ‘Alarming’ Slowdown, Bbg