[MARKET ANALYSIS] T-note futures paused overnight after recently gaining on Fed Waller's support for keeping rates steady this month

USTs: -0.5 ticks Pauses overnight after gaining in the aftermath of Fed Waller's comments, in which he said he would support holding the policy rate steady in September if August inflation data shows continued progress, but would consider a hike if inflation is hot, while he stated they can wait one meeting and that there is little cost to waiting one meeting. Markets now await the key US jobs data, which could provide a further impulse on September rate expectations. Bunds: -15 ticks Pulled back after yesterday's mild rebound and failed to sustain the brief reclaim of the 123.00 level, while participants also look ahead to German Factory Orders and EU Retail Sales data. JGBs: +48 ticks Tracked the recent upside in global peers and with recent reports noting that the BoJ is reportedly favouring a 25bps hike and a flexible future pace, which effectively negates the recent suggestion by Board Member Takata, who had left the door open for a larger move this month.