UK inflation data came in HOT overnight with the core m/m reading up1.3% vs 0.9% f'cast, a far cry from the 0.4% m/m core inflation in the US and another reminder about global price pressures.  Fortunately, unless you're really stocking up on HM sauce, Marmite, and a new McLaren or two, the implications for spillover to US inflation are modest at best. 

As such, US bonds were able to move back into positive territory when bonds recovered while UK bonds are still 5-6bps higher on the day.  Meanwhile, debt ceiling doubts continue driving risk-off vibes, as reflected by the ongoing slump in stocks.  This also helps account for some of the excess resilience in Treasuries despite today's looming Treasury auctions.