FED: US TSY 9Y-10M TIPS AUCTION: NON-COMP BIDS $43 MLN FROM $19.000 BLN TOTAL

• Date $MM Issuer (Priced *, Launch #)
• 08/19 $5B *IBRD (World Bank) 10Y SOFR+60
• 08/19 $4B #EIB 5Y SOFR+39
• 08/19 $1.25B #Allianz Perp-NC8.7 6.55%
• 08/19 $1B #DBJ 3Y SOFR+50
• 08/19 $1B #MetLife $600M 3Y +45, $400M 3Y SOFR+70
• 08/19 $750M #CCDJ 5Y +75
• 08/19 $Benchmark Pricoa Global Funding 7Y +100a
• 08/19 $Benchmark National Rural Utilities 3Y +48
• 08/19 $Benchmark British Colombia 5Y SOFR+56
• 08/19 $Benchmark Hanover Insurance 10Y +150a
• 08/19 $Benchmark MassMutual 10Y +78

• Stocks trade mixed early Tuesday, well off early highs - the DJIA outperforming weaker SPX emini and Nasdaq indexes ahead midday. Currently, the DJIA trades up 6.44 points (0.01%) at 44921.68, S&P E-Minis down 29.25 points (-0.45%) at 6440, Nasdaq down 243.1 points (-1.1%) at 21385.81.
• As noted in the 1113ET bullet, aside from a sell-program, Communication Services and Information Technology sectors underperformed in the first half, the former weighed by Trade Desk -3.38%, Netflix -3.22%, Paramount Skydance -2.33%, Warner Bros Discovery -2.16% and Meta Platforms -1.85%.
• The IT sector was weighed by: Palantir Technologies -5.83%, Jabil -4.31%, Advanced Micro Devices -3.93%, Oracle -3.92% and Super Micro Computer -3.35%.
• On the positive side, Real Estate, Consumer Staples and Health Care sectors outperformed. Investment trust stocks supported the former following this morning jump in (albeit volatile) Housing Starts data: Prologis Inc +4.01%, Federal Realty Investment +1.90%, Kimco Realty +1.85% and Weyerhaeuser +1.71%.
• Supporting Consumer Staples stocks included: Kenvue +1.59%, Colgate-Palmolive +1.52% and Kroger +1.39%. Meanwhile, pharmaceuticals buoyed the Health Care sector in the first half: Waters Corp +2.39%, West Pharmaceutical +2.34%, Baxter International +2.16% and Labcorp Holdings +2.00%.

European curves flattened Tuesday, with Gilts underperforming yet again ahead of UK CPI data.

• With no evident catalysts today amid a thin data/speaker slate, Monday's weakness in Gilts on the back of lingering fiscal concerns spilled over into today's session. 10Y Gilt yields hit a fresh post-May high (4.756%) in early trade.
• Bund yields traded almost entirely within the prior session's ranges, with the 2.80% level holding for the 10Y. Longer-end German instruments led the space overall in a broader rally over the most of the remainder of the session, with Buxl rallying after yields hit a fresh post-2011 high.
• Yields fell to session lows a little over an hour before the cash close, as equities tumbled (led by US megacap tech), resulting in a modest safe-haven bid that also saw periphery EGB spreads move a little wider.
• The German curve bull flattened on the day, with the UK's twist flattening. Periphery/semi-core EGB spreads closed mixed, with BTPs underperforming.
• Attention Wednesday will be on the UK CPI report. MNI's preview is here: the BOE MPC is focused on headline CPI which is expected to come in higher than in June.
• We also get an appearance by ECB's Lagarde and the Swedish Riksbank decision, as well as final Eurozone July inflation.

Closing Yields / 10-Yr EGB Spreads To Germany

• Germany: The 2-Yr yield is down 0.1bps at 1.958%, 5-Yr is down 1.3bps at 2.306%, 10-Yr is down 1.3bps at 2.75%, and 30-Yr is down 1.5bps at 3.323%.
• UK: The 2-Yr yield is up 1.5bps at 3.98%, 5-Yr is up 1.5bps at 4.138%, 10-Yr is up 0.2bps at 4.74%, and 30-Yr is down 0.9bps at 5.602%.
• Italian BTP spread up 1.2bps at 80.5bps / French OAT down 0.1bps at 68.3bps