May 02, 2024 04:52 GMT
Cash Bonds Dealing Slightly Richer Ahead Of Q1 Productivity Data
US TSYS
TYM4 is trading at 107-30+, -0-05 from NY closing levels, but off Asia-Pac session lows.
- Cash bonds are dealing 1-2bps richer in the Asia-Pac session.
- Two block trades of note have crossed in today’s session: A block of 2,050 contracts in 30-year bond June futures traded at a price of 120-02 on CBOT; and A block of 9,500 contracts in five-year bond June futures traded at a price of 105-01 on CBOT.
- Later today the US calendar will see the preliminary release for Q1 productivity. This will provide broader macro considerations of Tuesday’s higher-than-expected ECI. Strong productivity gains have offset labour costs in recent quarters but consensus sees productivity growth tailing off to 0.7% annualized in Q1.
- Beyond that, the market’s focus is likely centred on Friday’s US Non-Farm Payrolls release.
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