February 9, 2022

LOCKED Japan Update: 5-Year JGB Yield Rises to Pre-NIRP Level

5-Year JGB Yield Rises to Pre-NIRP Level
Japan Records First Current Account Deficit Since June 2020
Cash Wages Rise 0.3% in 2021
Consumption Rises 0.7% in 2021, Savings Rate Climbs
Japan to Supply LNG to Europe
January Economy Watcher’s Index Drops 19.6 Points on Omicron Spread

February 9, 2022

LOCKED MI2 China Update: Senior Officials Confess Corruption

Senior officials confess their corruption on government website
China inks $8bn nuclear power plant deal in Argentina
China pours money into Iraq as US retreats from Middle East
Philippine frontrunner Marcos favors China over US
Six Chinese companies attempt US listing in test for regulators
Wuxi Biologics’ shares dive after US places company on ‘Unverified List’
Local Land Sales Fall Just as Beijing Calls for More Spending
Chinese fertility rates remain ominously low
Shanghai Trade Unions submit proposals concerning platform workers
China’s 14th Five Year plan for “National Informatization”

February 9, 2022

LOCKED MI2 Trader: Eurodollar Tail Hedge

Having been unapologetic inflationistas and fixed income bears for all of 2021, earlier this month, we explained that in Q2/Q3, the focus would shift from the US towards Europe and Japan (“MI2 Chart Point: BTP and Euribor Breakout” 2^nd Feb). This was partly based on our belief that US headline CPI was close to a cyclical peak (“MI2 Chart Point: Headline CPI” 11^th Jan). We were premature on that one! However, it didn’t alter the fact that our short Eurodollar and 5yr Treasury trades had essentially hit our targets. Risk rewards had significantly changed, and it was time to do some spring cleaning (“MI2 Trader: Auditing Market Views” 24^th Jan).

February 9, 2022