[MARKET ANALYSIS] Treasury futures rebounded and yields softened amid US-Iran peace hopes

USTs: +2.5 ticks

• Marginally extended on yesterday's rebound after yields reversed this week's initial upside, as diplomatic efforts to revive peace talks continued, while US President Trump said the US had been called by the other side, which wants to make a deal very badly.

Bunds: +41 ticks

• Remained firmer and returned to the 125.00 level after clawing back recent lost ground, while further upside is capped ahead of supply, including EUR 5bln of Bobls later today, followed by EUR 3bln of Bunds tomorrow.

JGBs: +12 ticks

• Tracked the recovery in global peers but with the gains limited amid a lack of tier-1 data for Japan and as the latest 20yr JGB auction looms.