[MARKET ANALYSIS] Fixed income oscillates in tight ranges following Wednesday's risk-off bid

• UST futures pull back from Wednesday’s session high of 112’18 to a low of 112’13 as risks of a US strike on Iran recede. US President Trump also commented that he has no plans to remove Fed Chair Powell, though this did not trigger any meaningful move in Treasuries.
• Bund futures hold onto the majority of Wednesday’s gains, which were spurred by geopolitical developments. German debt pulls back to 128.35 from Wednesday’s peak of 128.48 and oscillates in a tight nine-tick range throughout the Asia-Pac session.
• JGB futures started the Asia-Pac session on the front foot, in line with the risk-off move seen in the Nikkei. Japanese 10-year debt peaked at 132.28 before pulling back to just shy of session lows at 131.81.

Fixed income is currently experiencing slight pullbacks in UST and Bund futures after a brief rally, attributed to receding geopolitical risks and comments from President Trump regarding Fed Chair Powell. While Treasuries saw minimal movement, the oscillation in German and Japanese debt highlights a cautious market that remains sensitive to global risk factors and policy signals, suggesting that momentum could be limited in the near term.