[MARKET ANALYSIS] Fixed income benchmarks hold onto Tuesday's losses, while JGBs see inversion at the long end

UST Futures oscillate in a narrow 109-02+ to 109-05+ range, as energy prices consolidate after crude futures surged over 5% in Tuesday’s trade following the revocation of Iran’s oil waiver and US threats, which then resulted in strikes on Iran.  Bund Futures, in tandem with USTs, trade in a tight 14-tick range. This comes ahead of a 10-year Bund auction, in which Germany is to sell EUR 6bln 3.00% 2036 Bunds. With the recent rise in yields, this could bring in extra demand for German debt, as seen with the US 3yr auction on Tuesday. JGB Futures also trades on a slightly softer footing but in narrow ranges. Japanese yields are reaching highs not seen since the 1990s, with a slight inversion at the long-end of the curve.