[MARKET ANALYSIS] T-note futures are contained ahead of supply and the FOMC mid-week, while JGB yields resume upward trend

USTs: -2 ticks

• Price action is contained heading closer to Wednesday's FOMC, and as markets continue to await President Trump's Fed Chair pick, while participants also look ahead to data releases and a 5-year note auction due later.

Bunds: -12 ticks

• Marginally pulled back from yesterday's peak after hitting resistance around the 128.00 level and with demand contained as supply looms, including a EUR 6.0bln Schatz issuance due later, followed by a similar amount in tomorrow's Bund offering.

JGBs: -29 ticks

• JGBs declined amid a resumption in the upside in JGB yields and with the curve steepening following the latest Japanese Services PPI data, which slightly cooled from previous to 2.6% (Prev. 2.7%) but remained above the central bank's price target.

T-note futures are showing limited action ahead of the FOMC meeting and upcoming supply, indicating traders are cautious as they await potential market-moving developments. Meanwhile, rising JGB yields suggest a strengthening outlook for Japanese inflation, which is significant as it could influence the Bank of Japan's policy stance, potentially tightening the monetary approach.