The US Treasuries saw selling across the curve during a relatively quiet US session light on data. From a data standpoint, little new information was seen aside from the Fed’s Labor Market Conditions Index that showed relatively maintained weakness for June (though posting a milder decrease for the month overall) and New York Fed consumer inflation expectations data (rising to +2.9 percent). The yield on the benchmark 10-year Treasury note rose nearly 5 basis points to 1.481 percent and the yield on short-term 2-year note jumped 1/2 basis points to 0.665 percent by 12:50 GMT. Also, the UK political pressures eased following the election of new Prime Minister Theresa May and the prospect of a boost to monetary stimulus worldwide supported equities and reduced safe-haven buying In terms of Fed commentary, Kansas City Fed President Esther George appeared to reassert her dovish posture, highlighting the resiliency of the US economy (despite 1Q16 weakness), while weighing on the UK Brexit decision (suggesting it was more of a longer-run factor to consider). Today, crude oil prices recovered Tuesday but stayed near two-month lows as increased US drilling, a strong dollar and hints of higher production by Iran and Libya brought worries about a global glut back into focus. The International benchmark Brent futures rose 2.27 percent to $47.30 and West Texas Intermediate (WTI) jumped 1.90 percent to $45.61 by 09:30 GMT. Markets now look ahead to a mild flow of data on Tuesday, highlighted by NFIB Small Business Optimism, JOLTS job openings and wholesale inventories data, followed by a 10-year Note reopening later in the session. Meanwhile, the S&P 500 Futures rose 10.50 points to 2,140.75 by 12:50 GMT.

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