Halister News

(Bloomberg) -- For the Treasuries market, “there is an asymmetry of risks” ahead of the U.S. employment report on April 7, BMO Capital Markets strategists Ian Lyngen and Aaron Kohli write in a note.

• “Anything that disappoints versus the current consensus of +175k will have a more significant influence on the market than another strong employment surprise”
• April payrolls report came in below estimates in seven of the last nine releases, “a strong bias to disappoint”
• “That is not to suggest that we wouldn’t see yields press back into the middle of the prevailing range on a stronger print, but rather that the bullish reaction from a disappointing release would be larger and presumably raise questions about the Fed’s likely path of normalization”