[MARKET ANALYSIS] JGBs recouped post-election losses, while T-note futures are kept afloat but with demand limited amid US and corporate supply

USTs: +1 tick

• T-note futures eked slight gains but with upside limited following the choppy performance and recent reports that China is to curb UST exposure, while demand is also contained ahead of US supply and following Alphabet's USD 20bln 7-part issuance.

Bunds: +6 ticks

• Remains afloat after rebounding from the prior day's trough but with further gains capped ahead of German auctions, including EUR 5.0bln of Bobls later and EUR 2.5bln of Bunds tomorrow.

JGBs: +36 ticks

• Reversed the post-election declines, with participants now looking towards the looming 10yr inflation-indexed JGB auction.

JGBs have notably recovered from their post-election declines, which is encouraging for Japanese bond investors, especially with an upcoming inflation-indexed auction. In contrast, T-note futures are slightly up but face headwinds due to restrained demand stemming from anticipated U.S. supply and news of China's reduced exposure to USTs. This mixed sentiment indicates a cautious approach among fixed-income investors as they navigate both domestic and international pressures.