NFPS Await

T-Notes held to a 0-02 range overnight, sitting at the lower end of Thursday's range, last unch. at 131-19, on volume of ~62K. Cash Tsys sit unchanged to 0.5bp cheaper across the curve, with little in the way of tier 1 headlines crossing in Asia. Focus is squarely on Friday's NFP print, which comes in the wake of Thursday's strong U.S. labour market data, although many continued to question the link between the ADP employment print and headline NFP reading.

• The contract went out just above worst levels of the day on Thursday. As a reminder, better than expected labour market readings, in the form of ADP employment and weekly initial jobless claims, pressured Tsys on Thursday. The belly led the way lower, with 5s cheapening by ~5bp on the day. The Eurodollar strip bear steepened, as the blues softened by ~5bp. Flow was headlined by a cumulative ~40K of the 2EZ1 99.000/98.875 put spread being bought vs. the 2EZ1 99.250/99.375 call spread, paying 0.00 to 0.01, with interest in that position spanning Asia hours through to late NY dealing.
• Factory orders and final durable goods data will complement the NFP release on Friday. Elsewhere, Fed Chair Powell takes part in a BIS panel covering climate matters, with the Fed set to go into pre-meeting blackout at the end of today.