A decisively hawkish reaction to....>

US TSYS SUMMARY: A decisively hawkish reaction to a better-than-expected June

employment report, with bear steepening in the curve, subsequently gave way to a

pre-July 4 holiday reversal.

- 4.8m payrolls gains and upward revisions to May to 2.8m from 2.5m - alongside

unemp 11.1% vs 12.5% exp (13.3% prior) and solid internal numbers saw a sell-off

at the long end, with the 10-yr Yield widening 3.6bps.

- But 10s now stronger than before that report, with equities off highs and the

US$ rallying in the hours following payrolls. Many reasons given, incl record

increase in Florida COVID cases, but most headlines were shrugged off at the

time, and easier to pin this on pre-long weekend positioning.

- The 2-Yr yield is down 0.6bps at 0.1546%, 5-Yr is down 1.4bps at 0.2974%,

10-Yr is down 0.7bps at 0.6693%, and 30-Yr is up 0.5bps at 1.4279%.

- Sep 10-Yr futures (TY) up 4/32 at 139-2.5 (L: 138-23.5 / H: 139-04.5)

- CME 'floor' closes at 1300ET; SIFMA recommends early cash close at 1400ET, and

of course markets off Friday.