OVERNIGHT NEWS
# Bond yields consolidate before US payrolls and Euro flash CPI. FX and stocks quiet. Fed’s Bullard (2022 voter) sees rate hike as soon as March, shrinking balance sheet is logical next step in response to surging inflation.
# Day ahead: US NFP: SG forecast +400k, range 150k–850k. Flash Euro CPI, Canada employment, Mexico and Poland CPI
# China: PBoC drained net CNY660bn of liquidity from banking system this week, biggest withdrawal since November
# Japan: Tokyo CPI edged up to 0.8% yoy in December from 0.5% in November. Investors sold ¥416.5bn foreign bonds last week.
# Nikkei -0.1%, EUR 10y IRS unch at 0.355%, Brent crude +0.7% at $82.6/b, Gold flat at $1,792/oz
Uptick in US payrolls today could nudge 10y UST closer to the2021 high of 1.77%
