FT: Japan’s inflation outpaces US for the first time in 8 years
July 21, 2023
–Surprising weight on rate futures yesterday, with the green pack (SFRU5, Z5, H6, M6) leading the way settling -16 on the day. Reds, 2nd year forward settled -12.875. Ten year yield jumped over 11 bps to 3.852% going into today’s August option expiration. There’s really no standout TY option strike with large open interest; the most of any strike is TYQ 112p with 57k, settled 6 ref 112-04+.
–Late in the day Bernanke echoed Pimco colleague Clarida in saying next week’s hike could very well be the last. And…another 30k SFRH4 9600/9700cs were bought. Settled 8.75 vs 9492.5, total position now about 110-120k.
–$/yen jumped from 140 to 142 as several stories suggest BOJ will keep yield control steady at next week’s meeting, but raise inflation projections. Japan Core Inflation at 3.3%, now 15 months above the BOJ’s 2 pct target. Reprieve for those funding in yen…for now. US stock index futures seeing small bounce after yesterday’s 2% decline in Nasdaq Comp.
–Baker Hughes rig count today. CLU3 trading 76.60 at the high end of the recent range.
–In yet another sign of the apocalypse, businessoffashion.com says “US fashion’s new hotspots are Dallas and Orlando, according to census data and real estate leasing rates.”
[has Orlando written all over it]
