[MARKET ANALYSIS] T-note futures take a breather after advancing yesterday alongside lower oil prices and a haven bid

USTs: -0.5 ticks

• Takes a breather after climbing yesterday alongside a slide in oil prices and as equities dipped, which spurred haven demand flows, while T-notes were unfazed by a weaker 5yr note auction and further incoming supply.

Bunds: +4 ticks

• Paused overnight after advancing above the 127.00 level and holds on to recent spoils, while participants look ahead to approaching data, including German GfK consumer confidence.

JGBs: +28 ticks

• Price action was choppy at the open, but eventually edged higher, despite a looming 20yr auction and recent comments from BoJ Board Member Tamura, who said it is important to push the BoJ’s policy rate closer to neutral to avoid being forced to hike rates sharply later, and that he voted against the BoJ’s decision to pause tapering from next fiscal year, as they should normalise the balance of its bond holdings as soon as possible.