[MARKET ANALYSIS] T-note futures are kept afloat after rebounding yesterday as a pullback in oil offset some of the inflationary pressures spurred by PPI data
T-note futures are buoyed by a rebound amid easing inflationary pressures from PPI data, primarily driven by a pullback in oil prices.
Japan considers drafting an extra budget, according to Kyodo
Chinese President Xi's welcome ceremony for US President Trump begins
[MARKET ANALYSIS] T-note futures are kept afloat after rebounding yesterday as a pullback in oil offset some of the inflationary pressures spurred by PPI data
[MARKET ANALYSIS] Oil trades rangebound after the recent choppy mood and as all focus turns to the Trump-Xi summit
PBoC injects CNY 0.5bln via 7-day reverse repos with rate maintained at 1.40%
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USTs: +5 ticks
- Remain afloat following the prior day's intraday rebound, in which the pullback in oil prices helped treasuries claw back the initial losses that were triggered by hotter-than-expected PPI data.
Bunds: +27 ticks
- Reapproaches the 125.00 level as some of the energy-related pressures dissipated, and despite comments from the ECB's Lane that the global oil shock from the Iran war may require ECB hikes.
JGBs: +3 ticks
- Trades little changed amid the lack of tier-1 data from Japan and as participants await a looming 30yr JGB auction.
This suggests a temporary relief for the treasury market, as it indicates that inflation concerns may not be as acute as previously thought, impacting sentiment around potential Fed rate hikes. The broader implications for fixed income could lead to a more cautious outlook from the Fed, influencing yields and risk sentiment.
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