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Treading Water Ahead Of Payrolls, ISM Services And First Post-FOMC Fedspeak

US TSYS
  • Cash Treasuries for the most part sit at the higher end of very narrow intraday ranges after a late open following a Japan national holiday.
  • The belly outperforms sitting 0.5bp richer, whilst the long-end underperforms with 30s almost 2bp cheaper. 2s10s sit near unchanged at -33bps after yesterday’s sizeable flattening for levels last seen on Oct 18.
  • TYZ3 at 107-17 is off earlier highs of 107-19, on decent cumulative volumes of 270k considering the aforementioned holiday. It has entered a key resistance zone between the 20- and 50-day EMAs, with next resistance eyed at 107-28 (Nov 2 high).
  • Data: Payrolls headlines at 0830ET (see the MNI preview here) but there could be sizeable market impact from ISM Services at 1000ET. We also see the finalized S&P Global services and composite PMI at 0945ET.
  • Fedspeak: Barr at housing conference (0800ET), Barkin on CNBC (1000ET), Kashkari in leadership discussion (1245ET), Barr in moderate discussion (1530ET) and Bostic on BBG TV (1530ET).

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