Treasuries opened in London with Japan on holiday in a quiet overnight session. Mkt continued to trade well and curve went into NFP at local flats. Payroll gains slowed to +150k vs 180k expected, u-rate ticked up 3.9% vs 3.8% and AHE lower than expected 0.2 vs 0.3. Data was weak on many facets, whisper going in was higher, and market bull steepened out of the gates initially led by the belly. 10s rallied thru 4.50% but lvls below were short-lived as better selling flows came in before ISM services. Data was mixed with lower headline / employment and higher prices paid / new orders. Mkt spiked higher but quickly faded as bid to belly moved into front end as 2s pushed near 4.80% in the afternoon. -3k US block sale also posted helping steepen the curve into afternoon as mkt looked forward to decent corp issuance next week (36b estimated) along with $48b 3s, $40b new 10s, and $24b new 30s. Slower payroll amped up hopes of a new shift in data as market goes out pricing 100bps cuts in 2024. Flows were mixed with CB buying 10s and HF selling 30s, but have seen better selling interest near 4.50%. Market continues to like trading this mkt w/ steepening bias and remain patient chasing this aggressive reversal ahead of supply. 

In China IG, Strong morning session with high beta TMT outperformed again and XIAOMI/WB/MEITUA all about 2-3 tighter. Rest low beta names only slightly tighter with most street flows. Vanke will host an online conference call with financial institutions on 6 Nov to discuss operations and bond price volatilities; Vanke’s management team (chairman Yu, CEO Zhu), largest shareholder Shenzhen Metro chairman Xin, and officials from Shenzhen SASAC will be present. 

In China HY, risk on but with quiet flows on back of it, no real rush to action in HY despite macro firming up, Market has seen ETF buyers of Macau overnight but that hasn't translated as heavily in Asia, overall levels in line with TRACES and the space is up 0.5-1pts as a result. The only other pocket interesting is NWD complex as they closed NWS transaction post market close yesterday, bonds were lifted 1pt higher end of day yesterday and is trading another 1.5pts higher on HF and PB flows. China property, small clips trading and on stressed lines, seeing small buying on lowest cash tranches after a month of steepening among those comps. 

The Asia sovereign space was firm on the week as rates and macro risk had a strong performance. Spreads continued to grind tighter with INDON closing -3-10bp and PHILIP closing -4-8bp tighter. Long end cash curves were 3.5-4.125pt higher. In IG corps, IG outperformed afternoon with stuff gapping due to lack of liquidity. In India space, Adani complex +0.5-1pt with ADANEM leading the gain and 2-way traded on ADANEM 30s. HY also closed higher with many bonds lifted higher like JSTLIN and the renewables. In Indon, active in MEDCIJ with 28s lifted unchanged and 29s lifted +0.5pt, saw both HF and RM adding. PWONIJ +0.5pt after +1pt on Thursday with street trying to frame level higher.

In the SGD, activities were somewhat in line with the typical Friday type of flows supported by some rebalancing flows. Saw good activity among the financials, where selective line items among the T2s trade up +0.25pt or so as dealers start to exhaust their inventory. AT1s caught a bid too on the short call papers following SOCGEN announcing their redemption in the USD space for the issue due this Dec.

AT1 closed Friday ~30c higher, with z-spreads about 7bps tigher relfecting the rates element of the rally.  SOCGEN calling their 7.875s helped to reinvigorate the short-call trade, with investors looking around for the next candidate.  Longer calls were also popular, with buyers of French and UK names especially.