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Subdued Session Ahead On US Payrolls

JGBS

JGB futures are holding stronger, +8 compared to settlement levels.

  • Outside of the previously outlined Household Spending data, there hasn't been much in the way of domestic drivers to flag.
  • The local calendar will see Leading & Coincident Indices soon.
  • Cash US tsys are dealing 1bp richer to 1bp cheaper, with a steepening bias, ahead of tonight’s Non-Farm Payrolls release. Nonfarm payrolls are expected to moderate in June after a surprisingly strong May. However, with heightened uncertainty around what is the genuine pace of employment growth, there could be a greater focus on the unemployment rate to assess labour market imbalances (See MNIs Payroll Preview here)
  • Cash JGBs are dealing little changed across benchmarks out to the 30-year. The 40-year yield is 1.6bps higher. The benchmark 10-year yield is 0.2bps lower at 1.079% versus the cycle high around 1.10%.
  • Swap rates are slightly lower across maturities, with swap spreads somewhat mixed.
  • The local calendar will see Labor & Real Cash Earnings, BoP Current Account Balance and Bank Lending data on Monday, ahead of Money Stock data and 5-year supply on Tuesday.

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