[MARKET ANALYSIS] T-note futures gradually pulled back after recent bull flattening and as oil prices partially recover

USTs: -3.5 ticks Mildly pulled back overnight following the prior day's bull flattening, which had been spurred by sources suggesting that the Treasury could use funds from the Treasury General Account to fund additional buybacks, while prices are also not helped by incoming supply. Bunds: -10 ticks Remains lacklustre after the recent indecisive performance, with participants awaiting German GDP and the ifo Business Climate survey, as well as issuances scheduled for today and tomorrow. JGBs: -11 ticks Demand is subdued as oil prices partially recover and amid expectations for an approaching BoJ rate hike, with former central bank board member Adachi noting the BoJ will probably raise the benchmark interest rate next month, stating that the BoJ is pretty much boxed in, markets have almost fully priced in a hike, and if the BoJ doesn't hike, the yen could weaken sharply.