Biased A Touch Cheaper, Block Buys Do Little To Support Space

The major cash Tsy benchmarks sit 1-2bp cheaper across the curve, while TYM3 hovers around recently registered session lows, -0-13+ 116-04+, as the contract sticks to a 0-08 range with bears failing to threaten yesterday’s base as of yet.

• Weakness in Gilts and Bunds, as they adjust to yesterday’s after-market developments and this morning’s ECB speak (although none of the latter really moved the needle), keeps U.S. Tsys on the defensive, more than reversing the bid that was seen in Tsys in early European trade.
• E-minis hold firmer in lieu of Apple’s strong earnings report and buyback announcement after the NY closing bell.
• Block buys in TU (+6,260) & WN futures (+1.7K) have had little net impact on the space.
• As noted earlier, the proximity to the impending NFP release will keep many on the sidelines pre-data.