US-CHINA: Tsy Secretary Bessent To Meet China Officials Next Week - Rtrs

TYU5 is trading 111-24+, down 0-01+ from its close. 

• The US 2-year yield opens around 3.73%.
• The US 10-year yield opens around 4.295%, up 0.1 from its close.
• MNI US Inflation Insight: Core Goods Spike Fails To Emerge. The July CPI report saw further acceleration in monthly core inflation but it was driven by the volatile supercore category. Instead, core goods inflation, an area of focus for tariff passthrough clues, was surprisingly soft. This category only maintained the still-solid monthly clip seen in June, whilst median core goods inflation moderated after a strong increase in June. Core CPI inflation was exactly in line with the median unrounded analyst estimate we had seen for July at 0.32% M/M, accelerating from 0.23% in June and 0.13% in May for its strongest month since January. 
• US DATA: NFIB Small Business Price Plans Cool. The NFIB small business index was stronger than expected in July despite weakness in the already published jobs details. Notably despite this slightly firmer backdrop, price plans cooled rather than accelerating further. 
• Price action in the long-end is a little disconcerting for the bulls though the 10-Year yield still trades below its 4.30/35%% pivot within the wider range 4.10% - 4.65%. There should still be buyers of treasuries on bounces back towards 4.30/35%, looking to initially test the 4.10% area. 
• Data/Events: MBA Mortgage Applications

• MNI: JAPAN JULY CORP GOODS PRICE INDEX +2.6% Y/Y; JUNE UNREV +2.9%
• JAPAN JULY CORP GOODS PRICE INDEX +0.2% M/M; JUNE REV -0.1%

July NZ card transactions rose 0.6% m/m, the highest monthly increase this year, but the annual rate is still down 1.0%. Retail spending was up 0.2% m/m rising 1.2% y/y, signalling a gradual recovery in nominal consumption. It has been trending higher since the March trough at -1.8% y/y. The RBNZ is likely to cut rates on August 20 as inflation is in the band and the economic recovery remains subdued, and the July card data was consistent with this. 

• While total retail spending rose slightly on the month, the core was close to flat. Statistics NZ noted that consumables transactions rose 0.5% m/m, while vehicles ex fuel jumped 5.2%. Apparel fell 1.9% and durables -0.8%.
• Non-retail ex services expenditure increased 1.6% m/m but services only 0.3%. 

NZ card spending y/y%

Source: MNI - Market News/LSEG