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Asia Morning Bites
Blowout headline US payroll data, but markets' response was measured. China returns from its holiday and oil prices surge on Hamas attack. Global markets: Friday’s apparent blowout payrolls release has given bond yields another push higher. The yield on the 10Y Treasury has risen 8bp to 4.80%, though it briefly got as high as 4.885% on Friday. 2Y yields rose 6.3bp to 5.081%. Oddly, financial markets don’t seem to be translating this into a higher probability of a November or subsequent rate hike. The implied yield on the October Fed funds contract is 5.3275%. This rises to only 5.375% in November, and 5.4% in ... (full story)