[MARKET ANALYSIS] Treasury futures remain pressured as oil rises stoke inflationary concerns

USTs: -7.5 ticks

• Remained pressured after retreating yesterday as yields rose across the curve amid rising oil prices, likely dealer concession and with some hot leaning PCE components of the CPI report, while more US supply also looms.

Bunds: -33 ticks

• Breached the 126.00 level after yesterday's one-way downward price action, as oil prices and geopolitics dominate markets.

JGBs: -24 ticks

• Price action is subdued amid the oil-related inflation pressures, while there were comments from BoJ Governor Ueda, who noted that they need to be mindful that Forex has larger impacts on prices than in the past and could affect inflation expectations.

Treasury futures are under pressure due to rising oil prices, which are heightening inflationary concerns and impacting yields across the curve. The market's focus is shifting to potential dealer concessions and the implications of upcoming US supply, while Bunds are also reacting similarly amid geopolitical tensions. This dynamic suggests traders are bracing for stronger inflation readings, which could influence future monetary policy decisions.