[MARKET ANALYSIS] T-note futures remain afloat after post-NFP steepening and with price action contained amid the US holiday closure

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[MARKET ANALYSIS] T-note futures remain afloat after post-NFP steepening and with price action contained amid the US holiday closure

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USTs: +4 ticks

  • T-note futures remain afloat following the prior day's steepening as money markets pushed back the first fully priced in Fed rate hike to December from October in the aftermath of the weaker-than-expected jobs report, while price action is contained overnight with US cash markets shut on Friday ahead of July 4th celebrations.

Bunds: -11 ticks

  • Bund futures are lacklustre after recent indecision and with little reaction seen following comments from Lagarde that she was confident the ECB had made the right decision by raising interest rates in June, as well as stated that second-round inflation effects had not materialised.

JGBs: +15 ticks

  • Rebounded from a one-month low, but with little fresh catalaysts, while Japanese officials continue to echo the familiar rhetoric regarding monetary policy and responding to currency moves.

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