[MARKET ANALYSIS] Treasury futures are subdued amid higher yields as rising oil prices stoke inflationary concerns

USTs: -5 ticks

• Remained subdued after retreating yesterday amid higher yields and better-than-expected ISM Services and ADP Employment Data, while participants look ahead to more labour market proxies due later ahead of Friday's NFP report.

Bunds: -42 ticks

• Retreated back beneath the 129.00 level as higher energy prices continue to stoke inflationary concerns.

JGBs: -29 ticks

• Tracked the downside in global peers amid a higher yield environment and as a 30yr auction looms.

Treasury futures are subdued as rising oil prices elevate inflationary concerns, contributing to higher yields across various markets. With the upcoming labor data, including Friday's NFP report, investors are cautious, reflecting a challenging environment for fixed income. The recent robust economic indicators like ISM Services have shifted the outlook, pressuring bonds and pointing towards a potentially more hawkish stance from the Fed.