[MARKET ANALYSIS] T-note futures are little changed after slumping yesterday post-NFP

The T-note futures are stabilizing after a sell-off triggered by a stronger-than-expected NFP report, suggesting that initial bearish sentiment is easing but remains fragile due to mixed auction results and upcoming issuances.

Newsquawk StaffPublished On the live feed at , 20 minutes before this page
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USTs: +1 tick

  • Trades little changed but is off the prior day's worst levels after slumping in reaction to the stronger-than-expected NFP report, and although some of the downside was faded, a further rebound was thwarted by a weak auction and with more issuances scheduled later, including a 30yr note offering stateside.

Bunds: +2 ticks

  • Takes a breather following yesterday's whipsawing and central bank rhetoric, in which ECB's Nagel called for more EU debt, while ECB's Schnabel noted there are numerous headwinds for the German economy and that demographic change is increasingly weighing on potential growth.

JGBs: +38 ticks

  • Remains firmer on return from the holiday closure as yields in Japan retreat, while the latest Japanese PPI data printed in line with expectations and provided little to influence price action.
Context

This backdrop indicates that traders are cautious about further rate expectations amidst ongoing central bank communications, particularly from the ECB, which could influence liquidity and market sentiment moving forward.

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