Higher US Yields Weigh, Tokyo CPI & BoJ's Ueda On Tap

USD/JPY mostly gravitated higher post the Asia close on Monday. By the NY session we got to a high of 150.57, but we weren't able to push higher. We sit close to 150.50 in recent dealings, off around 0.30% for Monday's session. A US yield recovery helped USD sentiment, with the front end (2yr) pushing up by 7.5bps, although the BBDXY sits close to unchanged.

• There we no headline drivers for the US yield move, although the Fed's Bostic stated his base case remains for two rate cuts this year, likely starting in the third quarter, and does not anticipate reductions at back-to-back meetings.
• US-JP yield differentials have ticked back higher, but remain off comfortably off recent highs (2yr spread near +443bps, the 10yr close to +350bps).
• In turn this has helped keep USD/JPY within familiar ranges. YTD highs remain intact at 150.89, while we haven't been able to retest the 20-day EMA (149.71) on the downside.
• On the data front today, we have Feb Tokyo CPI on tap. Y/Y momentum is expected to rebound from Jan, with the consensus looking for 2.5% for the headline (versus 1.8% prior). Ex fresh food is expected to print at the same level, while the ex fresh food, energy index is projected at 3.1% (versus a revised 3.3% gain in Jan).
• Note as well BoJ Governor Ueda will speak at FIN/SUM 2024 at 1pm local time (0400 GMT).
• Finally in the option expiry space, note the following for NY cut later today: Y149.00-10($1.0bln), Y149.50($1.0bln), Y150.20-40($1.6bln), Y151.50($751mln).