Back The Other Way

T-Notes flat at the re-open, last printing unchanged at 132-15+ after going out just shy of best levels of the day at the NY close.

• As a reminder, the belly of the cash curve led the rally on Thursday after Wednesday's belly-led weakening, with 5- to 10-Year paper richening by ~4.5bp as participants zeroed back in on the slack apparent in the U.S. labour market vs. pre-COVID levels. Local data was mixed, with the latest Philly Fed survey missing exp., while weekly initial jobless claims data was a touch more favourable than exp. On the flow side an 8.4K block buy of TYM1 helped the broader theme during the early part of the NY afternoon, while the early stages of the quarterly Tsy futures contract rolling exercise kept volume ticking over. The space looked through broader focus on a tentative ceasefire agreement re: Israel & Palestine, while the tech space led the rally in equities amid the lower yield backdrop.
• Global flash PMI survey readings will headline the broader economic docket ahead of NY hours on Friday, with existing home sales data due on the domestic slate. In terms of Fedspeak, we will hear from regional Fed Presidents Kaplan & Daly.