[MARKET ANALYSIS] Treasuries remained subdued after yields climbed on higher oil prices and a hawkish Powell

Treasuries are under pressure as yields rise, influenced by climbing oil prices and a hawkish stance from Fed Chair Powell.

Newsquawk StaffPublished On the live feed at , 20 minutes before this page
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USTs: -4 ticks

  • Remained subdued after yields climbed on higher oil prices, hot PPI data and the post-FOMC press conference, where Fed Chair Powell sounded hawkish on inflation and stated the possibility that the next move might be a hike did come up at the meeting.

Bunds: -30 ticks

  • Slid beneath the 126.00 level with market moves largely driven by geopolitics, oil and the Fed, while more central bank announcements loom, including from the ECB.

JGBs: - 35 ticks

  • Conformed to the downside seen in global peers, with participants also digesting better-than-expected Machinery Orders data from Japan, while the attention turns to the BoJ policy decision in which the central bank is unanimously forecast to keep rates unchanged at 0.75%.
Context

This indicates heightened concerns about inflation, potentially influencing future Fed rate hikes. The subdued nature of USTs suggests a cautious market response amidst geopolitical tensions and upcoming central bank announcements.

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