[MARKET ANALYSIS] T-note futures languish at the prior day's trough after recent curve flattening and better-than-expected data

USTs: -1 tick

• Languishes at the prior day's trough after the curve flatted on return from the long weekend and following the better-than-expected ADP employment and NY Fed Manufacturing data, while participants now await the FOMC Minutes due later.

Bunds: Flat

• Trades sideways following the prior day's choppy performance and disappointing ZEW data, with demand also contained ahead of a EUR 5.5bln Bund issuance.

JGBs: +10 ticks

• Extended on its recent advances but with the majority of early gains pared after hitting resistance just shy of the 133.00 level, while further upside is also capped amid the positive mood in Japanese stocks and after stronger-than-expected trade data.

The recent better-than-expected ADP employment and NY Fed Manufacturing data has led to a flattening of the yield curve, causing T-note futures to linger near their previous trough. This could suggest strengthening economic conditions, implying that the Fed might lean toward maintaining its current policy stance, especially with FOMC Minutes looming, which could provide further insights into future rate decisions.