Futures Higher Overnight After US Tsys Bull Steepen

In post-Tokyo trade, JGB futures are sharply higher, closing +25 compared to settlement levels, after US tsys bull-steepened, with yields 7-10bps lower. The US tsy 2-year yield finished 10bps lower at 5.05%. The 10-year yield finished down 6bps, after setting a fresh cycle high at 4.88%. At 4.73%, the 10-year yield remains 16bps higher over the week.

• US tsys latched onto lower-than-expected ADP private employment data (+81k vs.150k est. and +177k prior). Also, the services PMI printed 50.1 (vs 50.2 flash; 50.5 prior), but the services new orders sub-index fell sharply from 57.5 to 51.8, the lowest level for the year. The decline was reportedly linked to weak domestic and foreign client demand.
• Later today the US calendar sees Weekly Claims, Trade Balance, and various Fed speakers: Cleveland Fed Mester, MN Fed Kashkari, Richmond Fed Barkin, SF Fed Daly and Fed Vice Chair Barr.
• Today, the local calendar sees International Investment Flow data, along with 30-year supply.