[MARKET ANALYSIS] T-note futures are lacklustre after recent curve flattening and after some AI disruption fears were eased

T-note futures are showing a slight decline, reflecting the impact of recent curve flattening amid easing AI disruption fears.

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[MARKET ANALYSIS] T-note futures are lacklustre after recent curve flattening and after some AI disruption fears were eased

US President Trump has entered the House chamber to deliver the State of the Union Address

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USTs: -2 ticks

  • T-note futures are slightly lower after the choppy performance during US trade where the curve flattened as some of the recent AI disruption fears were allayed after Anthropic announced a slew of new partnerships, while the attention now turns to US President Trump's State of the Union Address.

Bunds: +1 tick

  • Lacks direction following the prior day's indecision and with Bund issuances and GfK data scheduled today.

JGBs: +17 ticks

  • Trades higher following reports that Japanese PM Takaichi relayed to BoJ Governor Ueda her reservations about further rate hikes, although prices are off today's best levels as participants await the Japanese government's BoJ nominations and with an enhanced liquidity auction also looming.
Context

This sets the stage for market participants as attention shifts to President Trump's upcoming State of the Union Address, which could influence sentiment and liquidity dynamics in fixed income markets.

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