[MARKET ANALYSIS] T-note futures are subdued after the 10yr yield rose to 5% for the first time since 2023 amid higher oil prices, looming central bank rate decisions and incoming supply

USTs: -7.5 ticks

• T-note futures are subdued amid gains in oil prices and after the US 10yr yield hit 5% for the first time since 2023, while prices are also not helped by incoming supply and ahead of Wednesday's FOMC rate decision.

Bunds: Flat

• Lacks demand after recent choppy trade and with participants awaiting German ZEW data and today's EUR 5bln Schatz issuance, followed by EUR 2.5bln of Bunds tomorrow.

JGBs: -14 ticks

• Conformed to the lacklustre mood in global peers as a 20yr auction looms and with the BoJ widely expected to hike rates later in the week.

Round-number yield levels in the long end have historically mattered less as technical barriers than as focal points: in past episodes of this kind, a first touch of a widely watched threshold has tended to draw in both yield-buyers seeing value and momentum sellers, producing the two-way, choppy trade described here rather than a clean break in either direction. The immediate driver mix is familiar: rising crude feeds inflation breakevens and lifts nominal yields through the inflation-compensation channel, while coupon supply ahead adds a concession dynamic that typically pressures futures into the auction window and then often sees some relief once the paper is absorbed. The pattern around major central bank decisions is well established, with duration positioning cut and ranges compressing into the announcement, then re-expanding on the statement and press conference rather than the rate decision itself. The cross-market texture matters too: Bunds and JGBs trading heavy alongside USTs points to a global duration repricing rather than a US-specific story, with an anticipated rate rise from one of the last holdout low-yield central banks tightening the correlation across curves. The distinction worth drawing is between a supply and energy-driven back-up in yields, which past episodes suggest fades with the calendar, and a repricing of the policy path itself, which the upcoming decision will adjudicate.