PIPELINE: Corporate Bond Roundup: Citigroup, Wells Fargo Guidance Updated

• Treasuries are slowly extending a pull back from recent steeps, with today’s price action through the US session looking more attributable to fresh cycle lows for 30s proving a more tempting entry point than any overt headline drivers.
• 10Y yields, currently at 4.708%, earlier hit 4.7458% to nudge above Jul 31 highs. They last cleared 4.75% in Jan 2025.
• 30Y yields at 5.286% are off an earlier fresh high since 2007 of 5.3361%, with the 2007 top at 5.4376%.
• 5s30s has pulled back to 91.8bp after an earlier 94.8bp marked fresh highs since May.
• In futures space, TYU6 trades at 108-16+ (+02) with cumulative volumes currently at 1.35mn easing to more typical levels for this time of day after a relatively elevated overnight.
• An earlier session low of 108-09 remained some way from troubling support at the bear trigger of 107-31+ (Jul 31 low). Recent losses have taken it away from last week's light probes of resistance at 109-02 (50-day EMA) on Thu and Fri.
• Rates meanwhile are back little changed on the day having pared modest losses, not quite fully pricing a Fed hike in December (cumulative 23.5bp).
• Tomorrow sees attention on the FOMC minutes and 20y supply after trend long-end weakness, whilst company earnings remain light with a next more notable name from Walmart on Thursday. 

CBC reports: "Canadian and American negotiators are expected to meet again on Tuesday to try and hammer out a deal to avoid new U.S. tariffs on some $30 billion in Canadian goods due to take effect just after midnight. Sources speaking to Radio-Canada said Canada-U.S. Trade Minister Dominic LeBlanc could meet with U.S. Trade Representative Jamieson Greer and then Prime Minister Mark Carney may speak to U.S. President Donald Trump. One of those sources said, as of noon ET, a time has not yet been set for either discussion, and things could still fall apart."

• Follows Fox Business reporting earlier that Trump spoke to Carney last night, but "there was no resolution that would prompt the President to hold off on the retaliation tariffs which are set for August 19th at 12:01am."

*UKMTO RECEIVES REPORT OF INCIDENT NEAR YEMEN’S AL MUKHA AUG. 17