[MARKET ANALYSIS] T-note futures are subdued after the prior day's steepening and data deluge

USTs: -2.5 ticks

• Remained subdued after Treasury yields rose across the curve yesterday, with the long end leading the move to see the curve bear steepen, while there was plenty of data to digest, including higher-than-expected ADP private payrolls, which pointed to solid private-sector hiring, while Q2 final GDP was revised to the upside, and PCE was softer-than-expected, although much of the softness reflected well-documented BEA methodology changes affecting software and accessories, portfolio management, and legal services. Furthermore, the US Treasury announced it would buy back USD 6bln of 10-20yr bonds, matching the prior size, but did little to spur price action.

Bunds: -18 ticks

• Paused overnight after gaining yesterday, albeit in a choppy fashion, with prices back beneath the USD 120.00 level and as participants look ahead to a slew of central bank rhetoric from both sides of the Atlantic.

JGBs: -28 ticks

• Ultimately declined in two trades as participants digested the latest BoJ Tankan survey, which was somewhat disappointing as the large industry sentiment and outlooks mostly missed forecasts, but showed that the headline Large Manufacturing still improved from the previous, while the Summary of Opinions from the BoJ September meeting noted an opinion that it was appropriate to keep raising rates in line with economy, price and financial developments.