Oil Bid, As Well As Supply & Fiscal Matters, Limit Recovery

{A continued recovery from last week’s lows for crude oil futures, aided by questions over the security of transit routes after the Yemeni Houthis seized an Israeli flagged cargo ship in the Red Sea (along with deeming such ships “legitimate targets”) and ongoing questions re: elongated OPEC+ output cuts, limits any recovery from session cheaps in core global FI markets.

• Elsewhere, the previously covered musings from UK PM Sunak have provided some light pressure, although the touted focus on the supply side of the economy limits feedthrough to gilts.
• Note that ongoing €IG supply and the impending round of U.S. 20-Year Tsy issuance will also be factoring into price action.
• Curve-wise, U.S. Tsys bear steepen, while gilts and bunds bear flatten.