Morning Update – 14/09/2016 – by Arjun Lakhanpal

Morning all.. Another bad session for Wall St as bond yields rose steeply again with the S&P down 1.5% but Asia was calmer with the Nikkei down 0.69% as sources suggested the BoJ may go deeper into negative with rates. USDJPY rallied strongly on this making a high in Asia of 103.19. Nikkei reported that Kuroda was considering a negative move of up to 20bp with a reduction in purchases in the long-end. Oil was slightly higher after a steep fall Tuesday. ECB’s Lautenschlaeger also said she was sceptical about any further interest rate cuts given the increasing side effects of such measures, “As I said, we will therefore need to be patient for a while before being able to make a final assessment of the purchase programme,” Lautenschlaeger said. “What matters now is to give the measures time to work. That’s why I see no reason at the moment to change the key design elements of the purchase programme.” EUR little changed…In FX more broadly there was a slight risk recovery; AUD and NZD finding some support following a sell off since the end of last week. AUD was up 40bps to 0.7485 and NZD bounced off the 0.0.7238 low. This morning we get CPI data from France, and Italy with unemployment from the UK and Swedish GDP.. Good luck..