Update: US Equity Indexes Advance as Weak Jobs Report Cuts Hawkish Outlook for Fed Policy in October

Canadian energy company Cenovus will acquire Athabasca Oil through a cash and stock transaction valued at CAD 12.00 per share.

(1) On Monday, Japan's government bond yield curve steepened, with subdued market activity ahead of this week's 10-year and 30-year auctions. (2) Reports indicate that the Bank of Japan may confirm that underlying inflation has reached its 2% target. (3) The 10-year benchmark yield briefly rose 1 basis point from last week's close to 3.11%, then retreated to around 3.085% on bargain buying, while the 5-year yield fell to about 2.365%. (4) The ultra-long end failed to follow the downward move: the 30-year yield on the most actively traded security rose about 2.5 basis points to 4.23%, and the 40-year yield increased approximately 3.9 basis points on the electronic platform. (5) The 2-year yield fell 1 basis point to around 1.905%, with curve steepening becoming more apparent after 9:45 a.m. (6) In the afternoon session, government bond futures fluctuated within a narrow range, with steepening pressure persisting, as the 10-year yield rebounded slightly to around 3.085% and the 30-year moved up to 4.23%. (7) Today's curve steepening suggests that investors are more cautious about Thursday’s 30-year auction than Tuesday’s 10-year issuance, with some Japanese securities firm representatives hoping the 10-year yield rebounds to levels corresponding to today’s decline before bidding closes, to ensure a stable auction. (8) Japan's Finance Minister and Prime Minister both attempted to avoid panic in the bond market. The Finance Minister stated that the Prime Minister is not pursuing a reflation policy, and in his policy address, the Prime Minister emphasized that deficit-financed bonds would not be relied on to fund the planned consumption tax cut. (9) However, most market participants believe the Prime Minister’s economic adviser leans toward a reflation stance, making it difficult to persuade the market. (10) The Bank of Japan Governor previously stated that underlying inflation is approaching 2%, that stabilizing it at this level is very important, and that the risk of overshooting is rising. (11) Overnight index swaps show about a 12% probability of a 25-basis-point rate hike at the October meeting, down from 15% last Friday, and about a 90.5% probability at the December meeting, down from the previous 96%. (12) The Nikkei index rose about 2.4% to 69,946.86 points, with USD/JPY quoted at 157.77.

The Chairman of ConocoPhillips (COP.US) stated that the company is in negotiations with Syria to expand its business in the region, including in the oil sector.

The Chairman of ConocoPhillips (COP.US) stated that the company will bid for the development project of Qatar's North Field West.