[MARKET ANALYSIS] T-note futures are higher following recent tariff developments, but with upside capped amid the closure of overnight cash treasuries trade due to the Japan holiday

T-note futures are experiencing upward movement due to heightened trade uncertainty stemming from the recent US tariff announcements.

Newsquawk StaffPublished On the live feed at , 20 minutes before this page
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USTs: +4 ticks

  • T-note futures edged higher amid the trade uncertainty after the Supreme Court decision on IEEPA tariffs and with US President Trump responding by announcing a global 10% flat-rate tariff, which he then increased to 15% during the weekend. Nonetheless, price action is contained amid the closure of overnight cash treasuries trade due to the Tokyo holiday and after the latest Fed rhetoric pointed to a lack of urgency to adjust policy.

Bunds: +14 ticks

  • Edged marginally higher following the US Supreme Court's tariff decision, which German Chancellor Merz expects to reduce the tariff burden on the German economy, while participants also await German Ifo data.
Context

However, the gains are limited as cash treasuries trading is paused for the Tokyo holiday, and recent Federal Reserve comments suggest no immediate policy changes, indicating a careful balancing act in the markets amid geopolitical tensions.

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