Inflation - JPY
BEs adopted a newfound attitude after the Fed ruined the day yesterday, lending solid support to today’s $14bn 10y TIPS reopening.
Listing of structured bonds and vanilla bonds issued in the Asia Pacific markets over the past week.
The Fed/Powell’s more decisive taper talk at today’s FOMC decision scared BEs lower amid better RY selling. 10y TIPS auction now eyed.
Risk sentiment stabilized after yesterday’s scare but BEs were sticky today, reluctant to join the modest risk-on move despite the Fed’s help.
The BEs curve steepened with tenors beyond the very front-end getting a modest bump higher amid many cross-currents.
The August CPI print missed the mark at most points - but not shockingly so – with BEs unsurprisingly bear steepening post data.
Price action and flow is lacking in the JPY rates space. What impact will the upcoming LDP election have on the market?
BEs sulk a tad on the eve of CPI as fast money sellers took advantage of recent strength.
TIPS breakevens hit an air pocket intraday but managed to returned to their earlier cruising altitudes despite headwinds.
BEs once again largely ignored the broader inflation unfriendly backdrop and pushed higher for the second consecutive session.