Global bonds are down to begin US......>

BOND SUMMARY: Global bonds are down to begin US nonfarm payrolls Friday.

- Active bond futures are weaker across the board: US T-Note Dec18 future is

down 1.5/32 at 117-260, Gilt future is down 33 ticks at 119.85 (10-Yr yield

touched highest levels since Jan 2016), Bund future is down 28 ticks at 157.76.

- However, all are off day`s lows.

- JGB futures off 3 ticks at 150.06. BOJ still stands ready to curb higher

yields through bond buying ops if the rise is deemed too rapid, MNI understands.

- Global rate futures are under pressure, with Short Sterling down most, as

optimism over a Brexit deal being reached in the near-term is seen rising:

Dec20-Sep21 Green contracts are particularly weak, off 6 ticks.

- Strong August factory orders for Germany this morning, but main event is at

1230GMT, which sees nonfarm payrolls and international trade data, followed by

U.S. consumer credit at 1400GMT.

- Nonfarm payrolls are forecast to rise by 182,000 in September after a

stronger-than-expected 201,000 rise in August.