950804

Debt futures

fall on data

expectations

CHICAGO: U.S. debt futures ended lower on Thursday but were in a holding pattern as the market wound up trade ahead of U.S. non-farm payroll data.

The September T-bond contract fell as low as 109-30/32 during the morning, shortly after release of U.S. weekly jobless claims data which showed claims for the week ended July 29 falling to 321,000 from 372,000 the prior week.

The September T-bond held however above the recent low of 109-27/32. It remained weak throughout the session but was able to move back above 110-00, helped by short-covering ahead of Friday's numbers.

Traders will also closely be watching the wage component of the employment report.

Any unfavorable report could put the September T-bond in position to retest the recent 109-27/32 low, with support seen however at 109-15/32.

December Eurodollar futures also ended softer, and were expected to follow the bond, traders said.

The September T-bond futures contract settled down 24/32 at 110-15/32, on volume estimated at just over 300,000.

Other prices at settlement -- September T-note futures down 18/32 at 108-12/32, September municipal bond futures down 8/32 at 112-15/32, 90-day December T-bill futures down six basis points at 94.71 and three-month December Eurodollar futures down six basis points at 94.24.-Reuter