US Treasuries reversed earlier gains, as yields surged across the curve, whilst 10T yield rose

Market Roundup

• US Treasuries reversed earlier gains, as yields surged across the curve, whilst 10T yield rose and hovered near the highest level in latest one month period, reacting to the firm US NFP number reported on Friday. The job market recorded a total gain of 255k for the month of July, way above 180k forecasted earlier. During the same period, unemployment rate stood unchanged at 4.9%, slightly above consensus 4.8%.
• Malaysian government bonds ended in mixed directions on. Despite the MYR strength, bond market gains were capped by profit taking pressure awaiting US NFP report. Apart from that, IRS rates edged higher by 1-5bps across the curve on Friday.
• Thai govvies hovered near prior levels, as players awaited US NFP data for further direction. Aside, trading interest eased, with daily volume shrank from Bt22.6 billion to Bt14.5 billion ahead of weekend.
• Indonesian government bond market was surprisingly quiet, although from local data, GDP YoY showed better readings at 5.18% from 5% estimates and improved from 4.92% prior. 2Q GDP QoQ also improved to 4.02% from -0.34% on 1Q, and higher than survey 3.80%. After BoE cut rate by 25 bps and added stimulus a day earlier, it appeared that players are still waiting for US jobs data on Friday. Some buying flows were seen in 2-3year tenors in afternoon session; however it was not enough to move the market. Daily volume fell to IDR8.9 trillion and still dominated by bonds maturing in over 10 years (69%).