NFP Day

A muted re-open for T-Notes, dealing around late NY levels, last +0-03 at 132-11+.

• To recap, cash Tsys twist flattened on Thursday, with very modest cheapening evident through 5s, while 30s richened by ~2.5bp come the close. A TU/WN flattener block (-22,000/+2,257) was seen late in NY trade, aiding the broader theme ahead of the close, which allowed 20s and 30s to tag richest levels of the session late on.
• The space moved off early firms in NY dealing, in what was generally a lacklustre session. There was nothing in the way of a notable reaction to better than expected initial jobless claims data, while the ISM m'fing survey resulted in some modest cheapening. T-Notes registered worst levels of the session as the details of the survey revealed another surge in the prices paid sub-index, which hit 92.1, the highest rate of expansion witnessed since 1979, before recovering as the late flattening dynamic set in.
• Participants were clearly cognisant of the proximity to Friday's NFP print and holiday-shortened session (for cash Tsys)/the elongated weekend.
• There is a lack of tier 1 risk events slated for Asia-Pac hours, with the aforementioned NFP print set to dominate Friday's shortened session.