[MARKET ANALYSIS] T-note futures pulled back after climbing yesterday amid trade uncertainty and AI disruption fears

USTs: -8 ticks

• Pulled back from the prior day's best levels after advancing on the risk-off mood stateside owing to US President Trump's global tariff hike and further AI disruption worries, while price demand is constrained overnight ahead of a plethora of data and Fed speakers, as well as incoming supply.

Bunds: +6 ticks

• Holds on to recent spoils but with further upside limited amid a lack of pertinent drivers and amid trade uncertainty with the EU postponing its ratification of the trade agreement with the US.

JGBs: +10 ticks

• Whipsawed on return from the long weekend in which prices initially rallied to above the 133.00 level, before fading the majority of the gains amid the mostly positive risk environment in the region.

The pullback in T-note futures reflects a response to heightened trade uncertainties and fears surrounding AI disruptions, specifically influenced by President Trump's tariff announcements. As market participants await key economic data and Fed communications, this cautious sentiment suggests that upcoming events could significantly impact risk appetite, likely exacerbating volatility in both fixed income and equity markets.