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

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.