[MARKET ANALYSIS] Treasury futures are lacklustre after the recent upside in yields and oil swings

Treasury futures are showing limited movement following recent increases in yields, influenced by volatility in oil prices linked to geopolitical tensions in the Strait of Hormuz.

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[MARKET ANALYSIS] Treasury futures are lacklustre after the recent upside in yields and oil swings

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USTs: -1 tick

  • Lingered at the prior day's trough after yields rose across the curve yesterday in tandem with oil amid the ongoing blockade of the Strait of Hormuz and with a resistance commander cautioning that anyone who attempts to cross the Bab Al-Mandeb must be alert to threats from all sides from noon today.

Bunds: -25 ticks

  • Trades sideways after recent whipsawing and a deluge of rhetoric from ECB officials and March meeting minutes.

JGBs: -11 ticks

  • Nursed some of their earlier losses and returned to the 130.00 level amid a lack of pertinent drivers and following the recent unwinding of BoJ April rate hike bets.
Context

This stabilization suggests traders are digesting past movements rather than making aggressive bets, reflecting a wait-and-see attitude ahead of potential monetary policy signals from central banks like the ECB and BoJ.

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