[MARKET ANALYSIS] T-note future languish at the prior day's trough after recent flattening post-ISM data

USTs: -1 tick

• Languishes at the prior day's trough after the curve flattened in the aftermath of the strong ISM Manufacturing report in the US.

Bunds: -8 ticks

• Remained subdued after retreating yesterday, and with a total of EUR 5.5bln of Bund issuances scheduled for today and tomorrow.

JGBs: -33 ticks

• Retreated amid a resurgence in risk sentiment and with demand hampered as participants await the looming 10yr JGB auction.

The T-note futures are holding steady at the prior day's low after a recent flattening of the yield curve driven by a strong ISM Manufacturing report. This suggests that markets may be adjusting their expectations around growth and inflation, impacting the Federal Reserve's outlook on rate hikes. The subdued Bunds and JGBs indicate a cautious sentiment ahead of upcoming bond issuances and auctions, signaling potential volatility in fixed-income markets.