Block Sales Offsets Downtick In Equities Ahead Of Payrolls

Cash Tsys are virtually unchanged across the curve into London hours, with the latest round of hawkish Fedspeak (via Waller & Mester) and block sales in the FV & TY futures contracts cancelling out any bullish impetus from weaker equities during overnight trade.

• TYZ2 made a brief and very limited showing below its Thursday base in the wake of the TY block sales. The contract last deals -0-01+ at 111-28+, sticking to a narrow 0-04+ range, on volume of ~52K.
• A lack of meaningful headline flow, proximity to the impending NFP release and thinner liquidity on the back of the ongoing Chinese holiday left many sidelined.
• A downtick in e-minis and Chinese equities has failed to generate a bid.
• The NFP print provides the highlight of the wider global docket on Friday (see our full preview of that event here: https://roar-assets-auto.rbl.ms/documents/19188/USNFPOct2022Preview.pdf ), with Williams, Kashkari and Bostic set to round off Fedspeak for the week.
• A reminder that cash Tsys will be closed on Monday owing to the Columbus Day holiday, although there will be no alteration to CME futures trading hours.