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Futures Cheaper With US Tsys Ahead Of US Payrolls Tonight

JGBS

In post-Tokyo trade, JGB futures are cheaper, closing -19 compared to settlement levels, after US tsys continued to cheapen in 2024 on the back of a rethink of aggressive rate hike bets, stronger data, profit-taking, and supply.

  • Cash tsys finished 5-8bps cheaper on Thursday, with the curve steeper, following higher-than-expected ADP Employment Change data (164k vs 125k est) and lower-than-expected Initial Jobless Claims (202k vs. 216k est).
  • The market now awaits Non-Farm Payrolls data later today. TYH4 is trading in today's Asia-Pac session at 111-29+, -0-02 from NY closing levels.
  • On the local data calendar today, we have the Dec monetary base, Dec PMI revisions (services) and later on the consumer confidence print.

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