Rates as of 0500 GMT

Having failed to find suitable tradeweighted indices, Im experimenting with making my own, using the weights supplied by Citibank. Please bear with me for a few days while I work out the bugs.

Market Recap

With Japan, China and the UK out for a holiday yesterday, trading was relatively quiet. Stock markets generally had a riskon mood, but the FX market wasnt 100 convinced, if my new TWIs are to be believed.

With the Tokyo market closed, USDJPY had some wild trading it ranged between a high of 109.70 during the Asian day to a low of 108.90 in the European afternoonNew York morning. Its now back in the middle of that range. I dont think there was any news out to justify such a wide range, just technical trading.

Global rates began drifting lower as the US day began. The decline accelerating after a surprising miss in the US Institute of Supply Management ISM manufacturing PMI, which fell to 60.7 from the previous months 37year high of 64.7 instead of rising to 65.0 as expected.

Yields continued to decline despite a much higherthanexpected pricespaid index, which rose to 89.6 from 85.6 vs 86.0 expected. This is the highest level in nearly 13 years. The press release also hinted at inflationary pressures to come. It said, The current electronicssemiconductor shortage is having tremendous impacts on lead times and pricing. Additionally, there appears to be a general inflation of prices across most, if not all, supply lines. This is similar to what…