Mixed Open, US Tsys Mixed After US Payrolls Data

ACGBs are mixed (YM +3.0 & XM -1.0) after US tsys finished trading ahead of the weekend mixed with the 2-year 3bp richer and the 10-year 3bp cheaper. The curve steepened to -88 bps from -95 bps Thursday and an intraday low of -110 bps on Thursday.

• Non-farm payrolls increased 209k which was marginally less than the 225k expected but there were large downward revisions of 110k to previous months. US tsys gapped higher initially after the data dropped but reversed as attention turned to the unemployment rate falling back to 3.6%, from 3.7% in May, and wage growth and hours worked printing stronger than expected.
• Cash ACGBs opened with pricing 3bp richer to 1bp cheaper with the AU-US 10-year yield differential at +21bp.
• The swap curve has opened with a twist steepening. Swap rates are -4bp to +1bp.
• Bills are richer across the strip with pricing +2 to +7, early reds leading.
• RBA dated OIS opened 1-6bp softer across meetings with mid'24 leading
• The local data calendar is empty today. Trade Minister Farrell is travelling to Brussels to meet with the EU Commissioners for Trade and Agriculture to reach a FTA. Australian PM Albanese will also be in Germany today to meet with Chancellor Scholz.