EM ASIA CREDIT: Philippines (PHILIP, Baa2/BBB+/BBB) CPI ahead of consensus

Early yen weakness is a feature of G10 markets. Yen is off around 0.30% against the USD in the first part of trade. Trends are mixed elsewhere with EUR weaker and back sub 1.0300, while AUD and NZD are up a touch. the BBDXY index is slightly higher, up above 1313. Recent highs in the index rest above 1316. 

• USD/JPY is near session highs, last close to 157.70/75. Recent highs in the pair rest at 158.08 (Dec 26), which is likely to be an upside focus point.
• US yields have opened higher, up 1.5-3bps across the curve, led by the back end. Positive US data surprises from late last week and Fed caution around inflation are likely supporting yields. This will be pressuring yen to a degree and is offsetting the rise in JGB yields (with cash bonds open for the first time since early last week).
• AUD and NZD are up a little over 0.15% at this stage, leaving markets with a slight risk on feel. AUD/USD was last 0.6225/30, NZD/USD is above 0.5620.
• On the data front, the Dec services PMI for Japan was revised lower to 50.9 from 51.4. In Australia the services PMI was revised up to 50.8 from 50.4.
• Later we get the Caixin services PMI in China.
• Also note there will be some focus on the CNY fixing, given spot's break above 7.3000 in Friday trade. USD/CNH is relatively steady so far today, holding sub 7.36000 in latest dealings. 

TYH5 is 108-12+, -0-07 from NY closing levels. 

• Cash bonds are 2-3bps cheaper, with a slight steepening bias, in today’s Asia-Pac session after Friday’s heavy close.
• Tsy futures finished last week near session lows following the December manufacturing ISM survey, which beat expectations. The headline reading of 49.3 improved from 48.4 prior and a 9-month high, besting the survey expectation of 48.4.
• This week, US economic data and Treasury supply are being brought forward to accommodate Thursday's "day of mourning" to honour President Carter. The Federal holiday sees most markets closed; the exception so far is CME rates, which will operate on a shortened session.
• Thursday's weekly jobless and continuing claims will be released on Wednesday according to the Dept of Labor site.

In Tokyo morning trade, JGB futures are substantially weaker, -26 compared to settlement levels on 30 December, the last day of trade. 

• The local data calendar just has Dec PMI revisions on tap today. On Thursday, November labour cash earnings data is released, which will be of greater focus.
• Cash US tsys are 2-3bps cheaper in today’s Asia-Pac session after Friday’s heavy close.
• Cash JGBs are 1-2bps cheaper across benchmarks beyond the 1-year (+3.7bps). The benchmark 10-year yield is 2.1bps higher at 1.121% versus the cycle high of 1.134% set on 30 December 2024.
• Swap rates are 1-6bps higher, with the 20-30-year zone leading. Swap spreads are mostly wider.