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T-Notes Heavy As Asia Weighs U.S. Jobs Report

BOND SUMMARY

T-Notes went offered along oil and precious metals, as Asia-Pac participants scrutinised strong NFP report released out of the U.S. Friday and ensuing speculation re: Fed tapering prospects. The contract has been probing the water under Friday's low and last sits -0-04 at 133-28. Eurodollars last seen unch. to -1.5 through the reds. Cash Tsys don't trade until the London open, owing to a public holiday in Japan, with Singapore's market closure further limiting activity. Chinese inflation figures mark the main highlight of the Asia-Pac session.

  • ACGB yields started on a firmer footing as cash trade reopened and have extended gains thereafter, albeit only slightly. The yield curve has bear steepened, with yields trading 0.4-4.8bp higher. YM last seen -2.5, with XM sitting -4.5. Bills run 1-3 ticks lower through the reds.

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