[MARKET ANALYSIS] Yields continue to ease back from recent peaks

USTs: +4 ticks

• Continues its gradual rebound from contract lows after the 10yr yield slightly eased back from the highest level in nearly 3 years, and with the curve steepening as attention turns to ISM Services and Fed's Waller today before NFP on Friday.

Bunds: +17 ticks

• Nursed some of the recent losses although remained beneath the 123.00 level with the rebound limited as energy prices remain elevated, providing inflationary-related headwinds for bond futures.

JGBs: +39 ticks

• Rebounded overnight as yields pulled back from multi-decade highs, including the 10yr yield which returned to below 3.00%, while participants await today's 30yr auction.

This is a session wrap rather than a catalyst, and the pattern it describes is a familiar one: yields backing off from round-number and cycle-extreme levels as the calendar turns heavy. Consolidation ahead of tier-one data is the standard sequence in bond bear phases; positioning squaring into services surveys and payrolls has historically capped yields short of fresh highs until the prints resolve direction. The cross-market texture is worth noting: the front end underperforming the long end in the US is consistent with steepening into a data window, while the Bund rebound being capped by elevated energy prices reflects the recurring tension between duration demand and imported inflation pressure that has repeatedly limited European fixed income recoveries. In Japan, the pullback from multi-decade yield highs ahead of a long-dated auction fits the established rhythm in which supply events act as the test of whether buy-the-dip demand is genuine; concession building and auction tails have tended to set the next leg there. The proximate follow-ons are the services survey, the named Fed speaker for colour on how officials are framing the move, and payrolls as the week's clearing event. As commentary, the signal is that the selloff has paused at resistance, not reversed.