GLOBAL BOND VOLATILITY - NOT JUST A HEADFAKE

And Why Inflation Matters In Japan

Why on earth am I writing about a recent economic data print out of Japan tonight?

Japanese PPI Y/Y 4.2%, expected 3.8%, previous 4.1%

Because I am focused on the yen carry trade unwind. In no way do I think last night's financial stress in the FX & RATE VOLATILITY market is ovah.

And given USDJPY is sitting like Humpty Dumpty on a the wall of 144, with support not before 139.40, I see the yen as fragile and its covariance risk (correlations breaking down) with US yields very high right now.

Why inflation matters in Japan & what it means for US equities: