[MARKET ANALYSIS] T-note futures gained amid on an early haven bid, while JGB futures climbed on intervention threat

The T-note and JGB futures are gaining traction, driven by geopolitical tensions from President Trump's tariff threat and domestic political unrest, indicating a potential flight to safety.

Newsquawk StaffPublished On the live feed at , 20 minutes before this page
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[MARKET ANALYSIS] Asia-Pac stocks mostly declined after Trump's tariff warning against Canada and the Democrats' threat of a partial shutdown, while Japan underperforms on intervention risk

[MARKET ANALYSIS] USD/JPY slumps on double intervention threat

[MARKET ANALYSIS] T-note futures gained amid on an early haven bid, while JGB futures climbed on intervention threat

[MARKET ANALYSIS] Gold and Silver rose to fresh record highs above USD 5,000/oz and USD 108/oz, respectively, while nat gas futures surged by double digit percentages amid US storm and power cut

CNN reports the small plane crash at Bangor International Airport in Maine was a private jet carrying 8 people

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USTs: +4.5 ticks

  • T-note futures were supported by an early haven bid to start the week after US President Trump's latest tariff threat against Canada if it makes a deal with China, and with the Democrats threatening a partial government shutdown over DHS funding in revolt against the fatal shooting of an anti-ICE protester. However, the gains are limited ahead of the FOMC mid-week and as markets continue to await Trump's Fed Chair pick.

Bunds: +10 ticks

  • Ekes mild gains in rangebound trade following last Friday's choppy performance, while German ifo data and comments from ECB's Nagel are scheduled later today.

JGBs: +22 ticks

  • Climbed after Japanese PM Takaichi warned that they are ready to take action against speculative market moves following the recent currency weakening and surge in bond yields, although further upside in JGBs is capped with a 5-year climate transition bond issuance scheduled today.
Context

Additionally, Japan's government is prepared to intervene in the bond market due to currency weakness, suggesting heightened sensitivity to external pressures in fixed income. This backdrop may lead to cautious sentiment ahead of key Federal Reserve decisions and economic data releases.

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