PERU: Lima CPI Slightly Ahead of Expectations

• Date $MM Issuer (Priced *, Launch #)
• 07/02 $Benchmark Korea Gas 3Y SOFR+100a, 5Y +85a
• 07/02 $Benchmark National Bank of Kuwait PerpNC6 6.875%a
• 07/02 $Benchmark SoftBank Group 3.75Y 6.75%a, 5.5Y 7.125%a, 7 Y 7.500%a, 10Y 7.875%a (in addition to 3 Eur tranches) Note, SoftBank Corp issued $1B over 2 tranches on Monday.
• $1.75M Priced Tuesday, $13.5B/wk

• Treasuries are lower across the curve, bear steepening as curves partly reverse yesterday’s bear flattening that was extended by a strong JOLTS report.
• Treasuries outperform EGBs but modestly underperform Gilts amidst fiscal concerns.
• Today sees labor market data in early focus with Challenger job cuts and ADP employment, the latter on a clear moderating trend in recent months, as a warm-up for tomorrow’s payrolls report (MNI Preview here).
• Cash yields are 1.2-4.7bp higher across the curve, with increases led by 30s.
• 5s30s has lifted to 95.5bps off a low of 93bps having pulled off last week's fresh ytd high of 103.3bps.
• TYU5 trades at 111-22 (-05+) on moderate cumulative volumes of 345k, having lifted a touch off session lows of 111-20+.  
• A bull cycle remains in play although there was a sizeable reversal off yesterday’s high of 112-12+, which now forms initial resistance before 112-15+ (61.8% of Apr 7-11 sell-off). To the downside, firmer support is seen at 111-07+ (20-day EMA).
• Data: MBA mortgage applications (0700ET), Challenger job cuts Jun (0730ET), ADP employment Jun (0815ET)
• Fedspeak: Nothing scheduled
• Bill issuance: US Tsy $65B 17W bill auctions (1130ET)

ECB'S REHN: RISKS TO INFLATION ARE TWO-SIDED" -bbg
REHN: CAN'T ALLOW INFLATION UNDERSHOOT TO SHIFT EXPECTATIONS

• Speaking on BBG TV - and mentions the EUR currency: "Exchange rate is not a policy target, and EUR appreciation has helped the ECB reach 2% inflation target. EUR has a real chance to become more important"
• Follows increased focus on the EUR rally this year - particularly after de Guindos said this week that EUR/USD at $1.20 is "acceptable", but a rally beyond that point would "complicate" things.