[MARKET ANALYSIS] Treasuries remained subdued after sliding yesterday and with the 10yr yield nearing 5% after oil surged

USTs: -4 ticks Remains subdued after sliding as yields climbed to multi-year highs, which saw the US 10yr yield approach near 5% as oil surged, and with prices not helped after the Treasury Buyback operation of USD 5.19bln, while Treasury Secretary Bessent noted that they didn't buy back as many as he said, because they buy cheap. Bunds: -22 ticks Lingers at the prior day's trough beneath the 121.00 level after sliding as the rise in oil stoked inflationary pressures and after the ECB hiked rates as widely expected, with source reports also noting that ECB governors think further policy tightening is likely and may debate another hike as soon as October. JGBs: -52 ticks Retreated after the surge in oil dictated price action across markets and heading into a widely anticipated BoJ rate hike next week, while PPI data from Japan was somewhat inconclusive as the Y/Y reading printed firmer-than-expected, but the M/M showed surprise deflation.