Meanwhile, Bank of Japan boss Kazuo Ueda’s weekend comments that the end of stimulus is possible during 2023 are still reverberating in the local bond market, with the benchmark 10-year yield pushing to a new near-decade peak.
It puts massive attention on the BOJ’s policy meeting next week, in an important week that also sees policy meetings by the Bank of England and the Federal Reserve.
The ECB, of course, kicks things off on Thursday, and markets are braced for a possible hike after hawkish rumblings from officials recently – although the odds still stand at close to a coin toss.
By contrast, the predominant view is for the Fed to forgo a hike again on Sept. 20, but eyes are trained on tomorrow’s CPI data to see if inflation is playing ball.
Today, the focus for macro data watchers is the British jobs figures, followed by GDP tomorrow.
Overnight, BOE uber-hawk Catherine Mann warned it’s too soon to stop raising rates. Traders certainly lean toward a quarter-point hike next week, putting the probability at about 80%. But they’re split on the chances of another, laying just north of 50/50 odds of one by March.
/cloudfront-us-east-2.images.arcpublishing.com/reuters/ZHR5QQZYU5JDXPKVWT3F2BLMTU.jpg "China developers catch break, BOJ hawks take flight 36")
