[MARKET ANALYSIS] Treasury futures rebound as a pullback in energy prices ease inflationary pressures, while participants look ahead to Jackson Hole later in the week

USTs: +4.5 ticks

• Rebounded from last week's trough as oil prices mildly eased back from around their 3-month highs, and with the main focus this week on Fed Chair Warsh's first keynote address at the Jackson Hole Symposium on Friday.

Bunds: +14 ticks

• Climbed higher and looks to retest the 124.00 level to the upside as the pullback in energy prices helps ease some inflationary pressures.

JGBs: -5 ticks

• Gradually recouped some of the initial losses but with upside contained amid a quiet calendar and as participants await supply from Japan in the form of 10-year climate transition bonds.

Rallies in USTs and Bunds on an oil pullback fit the standard pattern in which headline crude levels feed directly into near-term inflation expectations, with breakevens doing most of the adjusting while the front end holds to policy anchoring. The more durable driver for the long end this week is the scheduled Jackson Hole keynote, the customary venue where Fed leadership has used the platform to signal shifts in framework or the path of policy, and a first address from a new chair carries more informational weight than the repeat appearances that typically deliver incremental messaging. Pre-event positioning in such weeks has historically been characterised by reduced conviction and thinner participation, with desks reluctant to press duration bets into a speech that can reprice the curve in either direction. The divergence in JGBs is consistent with domestic mechanics rather than the global rates impulse: a quiet calendar plus incoming 10-year supply caps the bid, and auction concessions tend to be worked through the belly and back of that curve independently of UST direction. The tell to watch is whether the oil-led breakeven rally survives the speech, since moves built on energy softness have tended to unwind quickly when the central bank signal points the other way.