Traders of derivatives-like instruments known as fixings nudged up their expectations for the next few U.S. consumer-price index reports after the Organization of the Petroleum Exporting Countries and its allies agreed to cut oil production by 2 million barrels a day, starting in November. Fixing traders now expect the annual headline CPI rate for October to be 7.5%, up from almost 7.3% last Friday, and 6.8% for November, up from almost 6.6% previously. That would follow what they see as an 8.1% reading for September. Meanwhile, 5-, 10- and 30-year yields on Treasury inflation-protected securities were at 1.74%, 1.54%, and 1.69%, respectively, according to Tradeweb data — still down from the multi-year highs reached on Sept. 30, suggesting the TIPS market may still be somewhat discounting the prospects of sustainably hot long-run inflation.
USDJPY is on the rise again, and there is more to come
The USDJPY pair rose to 158.36 on Friday. Uncertainty persists regarding the Bank of Japan’s stance on interest rates. Find out more in our analysis
