Ahead of US payrolls, risk..........>

US TSYS SUMMARY: Ahead of US payrolls, risk continued to rip higher in the

European morning, with Eurozone equities up well over 2% at one point after

Thursday's ECB PEPP expansion was digested. While this didn't translate 1-to-1

in global core FI, we continued to see bear steepening in the Tsy curve.

- E.G., 2s30s hit highest since 2017, up ~14bps at one point since ECB decision.

- The 2-Yr yield is up 0.8bps at 0.2022%, 5-Yr is up 1.6bps at 0.4246%, 10-Yr is

up 3.7bps at 0.8601%, and 30-Yr is up 3.7bps at 1.6684%.

- Sep 10-Yr futures (TY) down 9/32 at 137-16.5 (L: 137-16 / H: 137-30.5)

- A morning fairly devoid of significant developments (some risk-off on China

MofCom announcement that it would retaliate against US move to blacklist 33

Chinese entities). Oil prices higher on OPEC+ deal too.

- Attention of course on payrolls at 0830ET, BBG survey median = -7.5mln, MNI

primary dealers median = -6.8mln.

- Around 1400ET we get NYFed's purchase schedule for next week. Holding $4.5bln

daily pace of buys appears to be consensus, some risk of drop to $4.0bln. 

- NYFed buys ~$5bln in Tsys this morning.