US CPI Disappoints, Yen Strengthens

The US CPI smile fades as longer-dated Treasury yields start to climb again, causing the early gains in Wall Street to evaporate. Asian markets are expected to open with a more subdued tone. Investors will also be monitoring the yen, which slid to a 15-year low against the euro and fell towards 145.00 per dollar, around where Japanese authorities intervened heavily last year. The loss of bullish momentum on Wall Street and the renewed 'bear steepening' of the US yield curve will unsettle some investors. While the short end of the bond market remains stable, reflecting the view that the Fed is done raising rates, the long end of the Treasury curve sold off aggressively. Other notable market moves include a decline in oil prices and India's rupee having its best day in a month.