FED: US TSY TO SELL $16.000 BLN 20Y BOND AUG 19, SETTLE AUG 31

• 10,000 SFRU6 96.115, post time offer at 1159:54ET.
• The Sep'26 quarterly contract trades 96.11 last +0.070.

• Fed Chair Warsh saying he doesn’t think it’s “mission accomplished” after today’s CPI report prompted a quick downtick in rates - taking until now to be asked on the report in the House testimony.
• It adds to recent downward pressure from a renewed firming in crude oil futures after explosions were heard in Iran’s Qeshm Island, US strikes are reported to have damaged Iran’s Kish Island’s power and water sites, and Kurwait reports its air defences are confronting hostile missile and drone attacks.
• SFRH7 (where peak implied yields still reside) is ~4 ticks lower over the past twenty minutes, about half of it since Warsh’s comments, but is still 6.5 ticks higher since the US CPI report for a similar move on the day – see chart below.
• FF futures are just shy of fully pricing a hike in October (24bp vs 31bp pre-CPI), with similar conviction for that meeting as had been the case for September pre-CPI.  

"*TRUMP: IRAQ OIL PARTNERSHIPS TO BE ANNOUNCED THIS WEEK OR NEXT" (BBG)