[MARKET ANALYSIS] Treasury futures are pressured as the surge in oil stoked inflationary fears

USTs: - 18 ticks

• Were pressured and wiped out the gains seen following last Friday's disappointing jobs data, as the surge in oil prices further stoked inflationary fears.

Bunds: -79 ticks

• Fell firmly below the USD 127.00 level as oil prices rocketed, while German Industrial Production data is due later.

JGBs: -47 ticks

• Conformed to the downside in global peers with yields climbing on the inflationary pressures, while data also showed that Japanese wages topped forecasts.

The surge in oil prices is significantly impacting Treasury futures, as rising oil costs heighten inflationary concerns. This pressure is evident as gains from previous job data are erased, suggesting that investors may be reevaluating inflation expectations, which could influence monetary policy decisions moving forward.