Equities are higher but bond markets...>

BOND SUMMARY: Equities are higher but bond markets are largely ignoring the

risk-on mood and also marginally higher on the day. No real triggers, but fixed

income markets are looking ahead to the key US data later today for more

direction.

- Consensus is looking for a 3.1mln increase in payrolls but there is a large

spread around this. The 25th percentile of the Bloomberg survey is 2.5mln with

teh 75th percentile 4.1mln. There are fat tails too with the 10th and 90th

percentiles at 1.5mln and 5.0mln respectively. However, our data team note that

the "the survey period for Thursday's report also misses a second round of

Covid-19 business closures in large states like Texas and Florida which occurred

in the final weeks of the month". Continuing claims will be closely watched too

and are expected to fall to 19mln from 19.5mln.

- TY1 futures are up 0-2 today at 139-00+ with Bund futures up 0.26 at 175.55

and Gilt futures up 0.15 at 137.23.