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Debt futures

stronger after

quiet day

CHICAGO: U.S. debt futures ended slightly higher after a lethargic session in tight ranges on Monday.

Treasury bond futures had dipped early after a stronger than expected National Association of Purchasing Managers' (NAPM) business index for March, but June T-bond support at 111-13/32 to 111-15/32 held and futures drifted higher into midday.

"After a while they found nothing out of the ordinary in the NAPM and...nothing really out of line," a trader said.

NAPM's business index rose to 46.9 from 45.2 in February.

A Reuters poll had forecast a level of 45.6.

June T-bonds were stuck in only a 15-tick range during the session.

"It's going to be an ambiguous type of week," the bond trader said. "We've got no numbers tomorrow and a few Wednesday and Thursday, and then Friday is a questionable type of day," he said. All eyes were on Friday for the release of March non-farm payrolls. A Reuters poll of economists forecast March jobs up 60,000, compared with a huge 705,000 jump in February.

"People are going to want to be square going into that number because it's going to be so illiquid," he said.

Friday's debt futures trading sessions will be abbreviated, which could mean increased volatility if the jobs number is a surprise.

"Unless some real retail flows come in between now and then, we're not going to see much action," he said.

Traders also tied strength to a firm tone in stocks and the dollar. Late strength was tied to mild short-covering, traders said.

Traders estimated T-bond futures volume Monday at less than 200,000 contracts.

December Eurodollars took lead contract status Monday from September. December Euro support was seen at 94.20, with resistance at 94.32.

At settlement -- June T-bonds up 10/32 at 111-25/32, June 10-year notes up 4/32 at 109-1/32, June five-year notes up 3/64 at 107-00, and December Eurodollars up 1 basis point at 94.26.-Reuter