[MARKET ANALYSIS] T-note futures are little changed after recent declines and curve flattening as prospects of US-Iran talks faded

T-note futures are little changed as the fading prospects for US-Iran talks contribute to recent declines and curve flattening.

Newsquawk StaffPublished On the live feed at , 20 minutes before this page
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US blocks Iraq's dollar shipments to squeeze its Iran-backed militias and suspends security cooperation with Baghdad in an escalating pressure campaign, according to WSJ

[MARKET ANALYSIS] DXY takes a breather after strengthening yesterday as geopolitics dominated the tape

[MARKET ANALYSIS] T-note futures are little changed after recent declines and curve flattening as prospects of US-Iran talks faded

[MARKET ANALYSIS] Oil prices are rangebound after recent choppy price action amid a breakdown of Islamabad talks, Trump's ceasefire extension and continued naval blockade

Fox News cited sources that stated US President Trump's decision not to resume strikes on Iran for now is a last chance for peace that Trump is giving to the Iranian people, but added the ceasefire will be short-term unless an agreement is reached shortly

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USTs: +0.5 ticks

  • Trades little changed after recent declines and curve flattening as prospects of US/Iran talks faded ahead of the ceasefire deadline, although Trump later announced to extend the ceasefire, despite the collapse of planned talks in Islamabad. Furthermore, there were several data releases, including better-than-expected Retail Sales, which was driven by a large jump in petrol prices, while participants now look ahead to a 20yr auction stateside.

Bunds: -8 ticks

  • Remains lacklustre after slipping back beneath the 126.00 level and with Bund issuances scheduled later.

JGBs: -21 ticks

  • Tracked recent downside in global peers, while the latest trade data also showed stronger-than-expected Japanese exports and imports.
Context

This sentiment may keep a lid on yields, especially in light of mixed data releases like stronger retail sales. Traders should closely monitor the upcoming 20-year auction for indications of demand and market directionality.

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