The uptick in unemployment and underemployment dominates when it comes to the initial NFP reaction, with slightly softer than expected M/M AHE also noted. Those factors more than offset the firmer than expected headline NFP reading.

• Tsys to firm to best levels of the day as a result, with TYZ3 through yesterday’s high, resistance at the August 11 high (111-13+) nears.
• Yields run through recent session lows out to 10s, leaving those measures at the lowest levels seen since the first half of August.
• Curve flips to bull steepening from twist steepening, with benchmarks flat to 9bp firmer on the session.
• 2s10s and 5s30s stay within ranges of recent weeks, with the latter spread dis-inverting once again.