Awaiting payrolls

After a brief move higher around an hour after the European open, core fixed income is now little changed on yesterday's close as the market eagerly awaits today's US employment report.

• Both the manufacturing and services ISM reports point to a more disappointing employment print, while ADP came in above expectations. Consensus today looks for 674k but we have even been asked questions about what the revised April print is likely to be as an illustration of how much focus there is on today's print.
• Outside of the US labour market report, US factory orders and a final print of durable goods orders are expected while Italy's sovereign debt rating is due to be reviewed by Fitch today and Germany's by DBRS.
• TY1 futures are unch today at 131-19 with 10y UST yields up 0.1bp at 1.628% and 2y yields up 0.5bp at 0.162%.
• Bund futures are up 0.07 today at 171.57 with 10y Bund yields down -0.4bp at -0.188% and Schatz yields up 0.3bp at -0.672%.
• Gilt futures are down -0.10 today at 126.77 with 10y yields up 0.2bp at 0.842% and 2y yields down -0.1bp at 0.082%.