UK government bond futures remain weak as a slight rebound in oil prices puts pressure on the bond market

(1) During the European session, UK government bond futures showed weakness, experiencing a brief rebound in the early morning before weakening again, continuing the downward trend from the previous trading day. Overall market sentiment remained cautious. (2) International oil prices ended a three-day losing streak with a slight rebound. Brent crude oil futures rose 0.35%, holding above $88 per barrel, with the recovery in energy prices increasing the adjustment pressure on the bond market. (3) Influenced by both US inflation data and the rebound in oil prices, the UK government bond yield curve rose overall. The 10-year yield climbed 1.5 basis points to 5.30%, while the 2-year yield rose slightly by 0.5 basis points to 4.35%. (4) The December UK government bond futures fluctuated lower, retreating slightly compared to the previous trading day's settlement price. Attempts to rise intraday were blocked, but overall this week they maintained a slight upward trend. (5) Earlier declines in oil prices were mainly attributed to improved market risk appetite, combined with a recovery in crude oil transportation through the Strait of Hormuz and positive signals emerging from related multilateral negotiations, leading to continued retreat of safe-haven trades in the market.