US: "*TRUMP TO MAKE ANNOUNCEMENT 1PM ET WED." - BBG

In post-Tokyo trade on Friday, JGB futures closed stronger, +12 compared to settlement levels, despite US tsys finishing weaker, albeit near midrange for the day, as rates gradually pared the initial sell-off on stronger than expected August Jobs gains.

• Nonfarm payrolls increased 162k (cons 55k) with a 55k two-month update revision, with the government adding 35k (bouncing from -50k in Jul) along with a two-month update revision of 18k. Private payrolls were comfortably stronger than expected as they increased a seasonally adjusted 127k (cons 50k) after a two-month upward revision of 37k.
• Fed entered Blackout at midnight on Friday ahead of its policy meeting later this month. CPI and PPI top the bill in the US this week.
• President Donald Trump on Friday demanded the Federal Reserve lower interest rates or else he will cut off trade with countries which the U.S. maintains trade deficits.
• "Japan said progress was being made on a $550 billion investment initiative set up as part of a trade deal with the US last year. "We'll continue working closely," Trade Minister Ryosei Akazawa told reporters in Washington late Friday." – BBG
• Today, the local calendar will see Leading and Coincident Index data.

Bloomberg Finance LP

ACGBs (YM -3.5 & XM -3.0) are weaker after cash US tsys finished weaker but near midrange for the day as rates gradually pared the initial sell-off on stronger than expected August Jobs gains.

• Nonfarm payrolls increased 162k (cons 55k) with a 55k two-month update revision, with the government adding 35k (bouncing from -50k in Jul) along with a two-month update revision of 18k.
• Cash US tsys will be closed for the Labor Day holiday today.
• President Donald Trump on Friday demanded the Federal Reserve lower interest rates or else he will cut off trade with countries which the U.S. maintains trade deficits.
• Cash ACGBs are 3bps cheaper with the AU-US 10-year yield differential at +42bps.
• The bills strip has bear-steepened, with pricing -2 to -4 across contracts.
• RBA-dated OIS pricing shows modest tightening across all meetings, with the probability of a 25bp hike rising from 18% for September to 134% by December 2026.  
• Today, the local calendar will see ANZ-Indeed Job Advertisements and Foreign Reserves.
• This week, the AOFM plans to sell A$400mn of the 5.00% 21 June 2036 bond on Tuesday, A$800mn of the 3.75% 21 May 2034 bond on Wednesday and A$800mn of the 2.75% 21 November 2029 bond on Friday

Bloomberg Finance LP

TYZ6 is dealing at 107-14+, -0-0+ from closing levels in today’s Asia-Pac session.

• Cash bonds will be closed for the Labor Day holiday today.
• Cash finished weaker but near midrange for the day as rates gradually pared the initial sell-off on stronger than expected August Jobs gains.
• Nonfarm payrolls increased 162k (cons 55k) with a 55k two-month update revision, with the government adding 35k (bouncing from -50k in Jul) along with a two-month update revision of 18k. Private payrolls were comfortably stronger than expected as they increased a seasonally adjusted 127k (cons 50k) after a two-month upward revision of 37k.
• President Donald Trump on Friday demanded the Federal Reserve lower interest rates or else he will cut off trade with countries which the U.S. maintains trade deficits. "LOWER THE RATE OR I'LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT," he wrote on social media
• Look ahead: Fed entered Blackout at midnight on Friday. Treasury buyback announcement on Wednesday. PPI & CPI on Thursday & Friday respectively. 

Bloomberg Finance LP