VIEW: Goldman Sachs note that "both...........>

BONDS: VIEW: Goldman Sachs note that "both establishment and household labour

surveys for June contained upside surprises-nonfarm payrolls rose 4.8mn,

compared to consensus expectations of +3.2mn, and both the unemployment rate and

the "true" unemployment rate (corrected for misclassified "employed, not at

work, other") fell sharply (to 11.1% and 12.3%, from 13.3% and 16.4%

respectively). Job gains appear to have been broad-based, confirming a rapid

sequential pace of recovery and supporting the case for higher yields.

Admittedly, the information is somewhat stale, and it remains unclear if the

recent sharp increases in coronavirus cases in the US will allow for additional

large gains over summer. We believe that the balance of risks are still tilted

towards higher yields in the US, though this may be clearer in the case of

Europe, where the incidence of coronavirus cases is lower. That divergence in

public health outcomes may also add some near-term downside risk to the UST-bund

yield spread widener we had previously recommended."