Asia Session sell of in Debt

 The big news today morning was the release of the Tokyo CPI Inflation.

The core CPI for the area of Tokyo in Japan jumped 4.3% in January 2023, accelerating at the fastest pace since 1981 and exceeding forecasts for a 4.2% rise amid broadening inflationary pressure. Tokyo’s core inflation rate, a leading indicator for nationwide price trends, also followed a revised 3.9% gain in December and surpassed the Bank of Japan’s 2% target for the eighth straight month, signaling that upward price trends in the country have not reached its peak yet. **trading economics

The BoJ announced the  Funds-Supplying Operations to Support Financing for Climate Change Responses for a notional of $ 21.73 bn as yields inched closer to the upper bound of the YCC band at 0.50%.

The CPI data sparked a sell off in yields in the Asian session with US 2YT at 4.19% and US 10YT at 3.53% and the 2x10 inversion at 66 bps.

Domestic yields also opened higher with 10Y treasury trading at 7.39% from Wednesday's low of 7.35%. 1Y OIS is trading 3 bps higher at 6.70% and 5Y OIS is trading 6 bps higher with 2x5 inversion at 49 bps off lows at 52 bps