Earlier in the session, Asian stocks rose, as gains in Chinese technology shares helped counter declines in Japan, with a numbers of markets closed for holidays. The MSCI Asia (mouse click the following web site) Pacific Index rose as much as 0.4%, on track for its third day of gains. Alibaba, Tencent and Meituan were among the top contributors to the regional benchmark’s advance, and helped push a gauge of Hong Kong-listed tech shares 2.5% higher; meanwhile an index of Hong Kong-listed Chinese stocks gained for the third day and entered a technical bull market after advancing 20% from a January low.

In rates, treasuries edge higher ahead of US inflation data due later on Wednesday, with 10-year yields falling 1bps to 4.35%, slightly outperforming gilts in the sector; curve spreads are likewise little changed, with price action limited ahead of CPI and 10-year note auction. 19.5bp cheaper than last month’s result, a 0.9bp tail. US session also includes 10-year note reopening at 1pm, following soft reception for Tuesday’s 3-year note auction, and 2pm release of minutes of March FOMC meeting.

Germany sells EUR 2.01bln vs exp.

Contained start to a packed day. UK sells GBP 4bln 3.75% 2027 Gilt: b/c 3.68x (prev. Bunds slightly firmer as the complex focusses on US events before attention will centre on Thursday’s ECB thereafter; a soft reception for a new 15yr Bund sparked modest pressure, but Bunds remain off earlier lows as expectations were tempered into the sale by the somewhat mixed history for new 15yr taps. Germany sells EUR 2.01bln vs exp. Crude benchmarks modestly firmer but with ranges thin and specifics somewhat light into US data though geopolitics and the escalating flood situation around Russian refineries draw focus. Gilts saw initial underperformance ahead of 2027 supply but following the strong auction, which received the highest demand since 2020, a modest bid emerged with Gilts back up to the unchanged mark.

While that would mark a step down from the previous two months, it may not be enough for Federal Reserve officials looking for even lower readings, although both Goldman and JPM expect the final CPI prints to come in on the dovish side of expectations. A hot number could “put a question mark on whether the Fed will cut at all this summer and will it be a September time frame,” said Guy Miller, chief strategist at Zurich Insurance Co. This would mean a further delay and “markets are very vulnerable to that as we have seen significant multiple expansion in the past 12 months,” he said (our full CPI preview is here).