The sudden turnaround in the bond market on Friday is definitely a curious one but perhaps it continues the theme from early August. The focus then was on the flood of supply in Treasuries, which still hasn’t changed by the way, and traders might be responding to that dynamic again. This comes despite some pressure on US data, which includes the jump in the unemployment rate on Friday here.
With US traders and the bond market itself being the ones in the driver’s seat, the absence of that today will make trading rather inconsequential (and perhaps rather sideways) until we get to tomorrow.
In FX, the dollar looked like it was about to get crushed post-NFP but suddenly is finding itself in a rather decent spot overall with EUR/USD now breaking back below 1.0800 and USD/JPY holding a push above the 146.00 mark again.