Inflation - JPY
BEs nudged a little higher with a strong PPI providing a green light against an inflation-friendly/neutral backdrop. CPI is now on the horizon.
Today’s Fed TIPS purchase helped support front-end BEs but the bull flattening nominal rally weighed on longer tenors.
BEs snapped back higher today after yesterday’s flow-driven hiccup. Inflationistas eye tomorrow’s Fed TIPS purchase operation.
BEs sellers emerge today as an energy rally lost much of its upward momentum intraday while nominal yields ground lower in the backdrop.
Listing of structured bonds and vanilla bonds issued in the Asia Pacific markets over the past week.
Oil sold off sharply despite continued Suez Canal paralysis. However, BEs ultimately ignored Black Gold and rallied nevertheless.
New that a stuck container ship in the Suez Canal lit a fire in the energy pits that sparked a decent bid in front-end BEs today.
BE characteristically bear steepened amid today’s broader risk-off move despite the helping hand of a lightly attended TIPS purchase operation.
Front-end BEs still traded nervously/lower despite a modest rebound in energy and a Fed TIPS purchase operation today.
The Jan31 TIPS auction passed the first post-FOMC/Powell presser test amid solid demand but BE’s still ultimately fizzled with the macro backdrop.