Eyes On Payrolls

T-Notes operate around late NY levels, +0-02 at 131-15+.

• The Tsy complex experienced a firm start to the month of April as the curve bull flattened on Thursday, with the longer end richening by ~8.0bp vs. Wednesday's closing levels. This came alongside/despite strong local data, which, when combined with the lower yield environment, allowed the equity space to firm. The S&P 500 index (and ES futures) traded and closed above 4,000 for the first time.
• The latest ISM m'fing survey revealed the fastest headline rate of expansion seen since the early 80s, bud didn't create anything in the way of lasting selling pressure for Tsys as it came on the heels of a strong round of regional PMI prints.
• Elsewhere, block flow in FVM1 futures dominated with just under 32K lots trading via block throughout the session, with a mixture of buying and selling observed (~13.4K bought vs. 18.5K sold).
• The NFP release headlines Friday's holiday shortened session, with thinner liquidity having the potential to amplify any post-data swings in the space. Widespread market holidays and a lack of tier 1 data may limit activity ahead of NY hours.