[MARKET ANALYSIS] Bonds move with oil prices; Bunds play catch up following Labour Day on Friday

The movement of 10yr UST futures alongside oil prices suggests a strong correlation, where early gains in bonds were offset as energy prices rebounded.

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  • 10yr UST futures move in tandem with energy prices, initially gapping higher but waning as oil recovered from worst levels.
  • Bund futures returned from the long weekend gapping higher but found some resistance around the 125.50 mark.
Context

Meanwhile, the Bund futures' gap higher after the long weekend indicates a catch-up effect, though resistance at around 125.50 highlights challenges in sustaining upward momentum. Traders should monitor the interplay between energy and fixed income for insights on demand dynamics and interest rate sentiments.

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