[MARKET ANALYSIS] T-note futures take a breather after rallying as a slide in oil price eased inflationary pressures

USTs: -2.5 ticks

• Takes a breather after climbing yesterday as the slide in oil prices dragged yields lower and eased some of the inflationary concerns. Furthermore, there was little sustained reaction following the hawkish-leaning FOMC Minutes, which leaned hawkish and revealed that “many” policymakers would have preferred to remove the easing bias from the statement, while the latest 20-year bond auction was broadly average.

Bunds: +24 ticks

• Remains afloat and continues to test the 125.00 level to the upside after the recent slump in oil prices.

JGBs: +17 ticks

• Followed suit to the gains in global peers, but is off today's best levels amid a surge in stocks and stronger-than-expected trade data, while there were also recent hawkish comments from BoJ's Koeda, who stated that the BoJ needs to continue to raise the policy interest rate in response to developments in economic activity, prices and financial conditions.