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Summary - Core Yields Move Higher, Regional Inflation Data This Week

LATAM
  • After moving lower in early Asian trading as local market participants reacted to the much stronger than expected US employment and ISM services prints on Friday, core fixed income has continued to drift lower in the European timezone as markets continue to reassess terminal rate pricing higher.
  • The Japanese government has approached Bank of Japan Deputy Governor Masayoshi Amamiya about succeeding Haruhiko Kuroda at the helm of the central bank, according to a Nikkei report that has seen the JPY come under further pressure since the open. Japan’s deputy government spokesman later refuted the report, saying it wasn’t based on fact, however, USDJPY remains 0.8% firmer amid the extension of Friday’s broad greenback strength.
  • Datapoints are few and far between Monday, with the central bank speaker slate similarly quiet. In LatAm, this week features January inflation data for Chile (Wed), Mexico and Brazil (both Thurs). The Banxico rate decision is also scheduled for Thursday, where consensus expects a 25bp hike to 10.75%.

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