[MARKET ANALYSIS] T-note futures attempt to nurse losses after recently bear flattening on oil price pressures

USTs: +5 ticks

• Attempts to nurse losses after recently bear flattening as the return of Brent to above USD 100/bbl further unwound Fed rate cut bets, and with prices not helped by supply, including a 30yr auction which was better than recent averages but not as strong as the stellar February offering, while participants look ahead to the Fed's preferred inflation metric.

Bunds: -19 ticks

• Remains subdued after retreating beneath the 126.00 level amid the oil-triggered inflationary headwinds, and as German wholesale prices loom.

JGBs: -29 ticks

• Tracked the losses in global peers amid price-related concerns and with a 10yr climate transition bond auction due today.

The T-note futures are facing pressure as oil prices surge above $100, which has prompted a shift in market sentiment away from Fed rate cut expectations. This bear flattening indicates that traders are adjusting their outlook on future interest rates, particularly with respect to inflation concerns. The subdued performance of Bunds and JGBs suggests a broader impact on fixed income markets, driven by fears of rising inflation linked to energy costs.