Cheaper After Friday’s Post-Payrolls Mid-Range Close

TYH4 is trading at 111-17+, -0-05+ from NY closing levels.

• This comes after US tsy benchmarks finished Friday’s session mostly cheaper but near the middle of a wide range following the release of Non-Farm Payrolls. The data was deemed 'noisy', with the higher-than-expected jobs gain tempered by downward revisions for the two prior releases (Dec jobs gain of 216k vs. 175k est, prior revised to 173k from 199k).
• The move away from session cheaps was also aided by lower-than-expected ISM services data (50.6 vs. 52.5 est), ISM Services Employment (43.3 vs. 51.0 est) and Services New Orders (52.8 vs. 56.1 est).
• The US tsy 10-year yield finished up 5bps at 4.05%, with the 2-year rate unchanged at 4.38%. It was the second consecutive session with the 10-year closing above 4%, the first time since December 13.
• US equity indices were little changed on Friday, but all three major US benchmarks were lower for the shortened trading week. It was the worst start to a year since 2003.
• Traders now await this week's CPI and PPI inflation measures on Thursday and Friday respectively.
• This is a reminder there will be no cash trading in today's Asia-Pac session with Japan out for a public holiday.