Curve Bear Flattens On Friday

TYM3 deals at 115-23, unhanged from Fridays settlement level in a muted start to Monday’s trading.

• Cash tsys finished 2-13bps richer across the major benchmarks on Friday, the curve bear flattened.
• Tsys were pressured in the aftermath of Fridays NFP print, the headline jobs number was stronger than expected and the unemployment rate ticked lower to 3.4%. Average Hourly Earnings were also firmer than forecast.
• Notable revisions to the March figures saw tsys pare losses, risk sentiment improved as regional banks rallied as jobs data tempered recession fears with Apples strong earning also boosting risk appetite.
• St Louis Fed President Bullard said that the Fed will probably have to push rates higher to cool inflation, but that he would wait to see what the data showed before deciding what to support in June.
• President Biden will meet with House Speak McCarthy and other congressional leaders on Tuesday as they look to break the impasse over the US cebt ceiling.
• There is a thin data calendar in Asia-Pac today. Looking ahead Apr CPI headlines the week on Wednesday, the market is expecting a 0.4% M/M rise in the headline number.