Yen gets an Ueda lift and Gilts get some relief

I will be a bit late with my CPI rundown as I'll be on CNBC right at 8:30am this morning. With long bonds now pretty oversold with the relative strength index on TLT down to just 27, I wouldn't be surprised if we got a bounce post CPI release.

TLT

The yen is having its best day in almost a month vs the US dollar ahead of the BoJ meeting next week and after Governor Kazuo Ueda spoke today to regional bank executives and said "There was a lot of positive talk on the wage outlook" when he spoke with bank branch managers last week. He also said they will increase rates if the improvement continues with economic growth and price gains. This follows the comments from the deputy governor yesterday which hinted at a rate hike. JGB yields continued higher too with the 40 yr yield in particular up 3 bps to 2.79%, the highest for a 2nd day since this maturity was first issued in 2007.