Central bank talk here, in Europe and Japan/The Chinese consumer is coming back/Other stuff

Bond yields around the world are moving up again. Voting member Raphael Bostic yesterday said "The evidence from data, our surveys, and our outreach says that victory is not clearly in hand, and leaves me not yet comfortable that inflation is inexorably declining to our 2% objective. That may be true for some time, even if the January CPI report turns out to be an aberration...My expectation is that the rate of inflation will continue to decline, but more slowly than the pace implied by where the markets signal monetary policy should be." He's certainly in no rush right now to cut. 

The ECB is having their own hawk/dove debate. German Executive Board member Isabel Schnabel today said "The recent long period of high inflation suggests that to avoid being forced into adopting a stop and go policy akin to that of the 1970's, we must be cautious not to adjust our policy stance prematurely."

This follows the comments from Lagarde yesterday where she said "The last thing that I would want to see is us making a hasty decision to see inflation rise again and have to take more measures."

The dove, the French ECB member Francois Villeroy said "It's not a question of rushing, but acting gradually and pragmatically can be preferable to deciding too late and then having to over-adjust."

BoJ Governor Ueda spoke in front of the Japanese parliament today but didn't say anything new but maybe that implies a shift soon. "We will continue to carefully analyze economic data and information to gauge whether a gradual recovery continues in the economy and a virtuous cycle between wages and inflation will strengthen." As he expressed optimism that wage growth will pick up, some took that as him continuing to lean to raising rates in the next meeting or two. 

Bottom line, yields rose a hair in Japan, more so in Australia and elsewhere in the region, are up between 2-4 bps in Europe and the US 10 yr yield is back above 4.25% and the 2 yr is back to 4.6%.