[MARKET ANALYSIS] T-note future hold on to gains after bull steepening on disappointing labour market metrics

USTs: +5 ticks

• Holds on to gains after bull steepening in the wake of soft labour metrics in which Challenger Layoffs surged in January to 108k from 36k, and weekly claims report saw a notable jump to 231k from 209k, while JOLTS tumbled to 6.5mln from 6.9mln, and the Revelio Labs US Jan Non-farm Jobs printed in negative territory at -13.3k.

Bunds: +14 ticks

• Remains afloat after the prior day's advances but with further upside capped following a lack of fireworks at the recent ECB meeting and with German Trade Data scheduled later.

JGBs: +16 ticks

• Ultimately gained but with price action choppy on both sides of the 132.00 level following weaker-than-expected Household Spending data and ahead of the Japanese election, while there were also comments from BoJ's Masu, who stated that an appropriate and timely rate hike is needed.

The disappointing labor market metrics have triggered a bull steepening in Treasury note futures, indicating investor concern over slowing job growth and potential implications for monetary policy. With significant rises in layoffs and claims, the data suggests a weakening labor market that may influence the Federal Reserve's stance on interest rates, providing a bullish backdrop for fixed income despite some limitations from European developments.