Asks if the CPI print has alleviated concerns about inflation going higher.
speaker1
Jim Bianco
The CPI number was a statistical mess. They assumed rents were effectively zero for October and surveyed only the second half of the month post-shutdown, picking up Black Friday sales data which skewed apparel and airline ticket prices down.
Asks how the belief the Fed will keep rates high, combined with high BOJ rates lifting global rates, will play out into 2026.
speaker1
Jim Bianco
The BOJ is likely to raise rates to a 30-year high. Inflation is elevated across the developed world; only the US and UK central banks are expected to cut in 2026, while others (ECB, BOJ, SNB, PBOC) will hold or raise.
Asks if rising Japanese yields and more attractive home markets will impact the long end of the US Treasury curve, given Japanese funds are major buyers.
speaker3
Jim Bianco
It can impact the curve. Japan is the largest foreign buyer of US Treasuries. The yield spread between US and Japan is narrowing and will likely continue to narrow as the BOJ signals further hikes in 2026.