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Expiries for Apr13 NY cut 1000ET (Source DTCC)

GERMAN DATA

ZEW Expectations Sentiment Fell in April

FOREX

Markets Await CPI, Fedspeak

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Treasuries were sold in response to the better-than-expected jobs report, with yields boosted smartly in the 10y sector of the curve. Benchmark 10y yields rose above the 1.6% mark to print 1.6238% - a new cycle high - before reversing on profit-taking flow as well as residual demand from foreign real money accounts and central banks across 5 - 10yr sector of the curve.

  • The curve itself traded lower and flatter into the close. A lot of focus was paid to the sharp rise in real yields post-payrolls, with inflation breakevens initially making up lost ground following Powell's comments Thursday.
  • Shortly after the data, real yields fully reversed the knee-jerk move (bringing nominal yields back below 1.60%) though breakevens are held gains.
  • The Fed blackout kicks off Saturday, leaving markets to parse data due in the coming week. US CPI/PPI crosses as well as prelim Uni. of Michigan confidence.