With the US 10y back under 3% and DXY....>

DOLLAR-YEN: With the US 10y back under 3% and DXY flirting with 93.00, the USD

encountered minor sales overnight. USDJPY ran into stiff resistance ahead of

Y110.00 (Y109.92 high) and slipped post fix to Y109.63. Key resistance remains

at Y110.20 from the 200-dma.  Consolidation remains the theme ahead of US CPI &

Jobless Claims data at 1230GMT. CPI is seen rising to 0.3% in April following a

weaker-than-expected 0.1% decline in March. The year/year rates should stabilise

or even decline modestly after a run up in March due to base factors from a year

ago. The level of initial jobless claims is expected to post a further increase

in the March 5 week, rising by 9,000 to 220,000 after a small 2,000 increase in

the previous week that kept claims very near a decades-low level.

Option-expiries: Y107.25 ($450mln), Y107.50 ($509mln), Y108.00 ($733mln),

Y108.80

($780mln), Y109.00 ($440mln), Y109.65 ($567mln), Y110.00 ($474mln).