[MARKET ANALYSIS] Treasury futures are contained amid rising oil prices and incoming supply
USTs: -2 ticks
- Price action is choppy amid the geopolitical uncertainty and following the recent mixed ISM Services report, while price action is also contained ahead of supply.
Bunds: -16 ticks
- Trades subdued following the four-day weekend and energy-related pressure, with demand not helped by upcoming Bund issuances totalling EUR 6.5bln scheduled for Tuesday-Wednesday.
JGBs: -6 ticks
- Languishes beneath the 130.00 level amid higher oil prices and yields, while participants also await today's 30yr JGB auction.
Context
Treasury futures are showing limited movement, reacting to rising oil prices and geopolitical uncertainty, which suggests that traders are exercising caution amid these pressures. The subdued price action is compounded by upcoming supply, particularly in the Bund market, which may indicate a potential for further upward pressure on yields as participants adjust their expectations ahead of new issuance. Overall, the combination of energy-related influences and supply considerations is likely weighing on demand for bonds across various markets.
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