Plenty of news, both economic and geopolitical, since we broke for Easter, the net market impact of which has frankly been quite modest. The risk-negative tone that pervaded markets last week and which centred on escalating geopolitical tension surrounding North Korea, has partially reversed after a long weekend and following the absence of any direct response from either the U.S. or China to North Korea’s (failed) missile test on Sunday. The bigger market moving event since last Thursday has actually been the soft U.S. CPI data reported last Friday, showing the first monthly fall in core inflation in seven years (-0.1%) and bringing the annual rate down to 2.0% from 2.2%. This poses something of a challenge to expectations of the Fed moving again on rates as early as June. The data came into a US rates market that was closed on Friday, so most of the impact was evident in yesterday’s Asia-Pacific session, which saw 10-year Treasuries fall to as low as 2.20% compared to 2.24% at Thursday’s close. The move clean below 2.30% last week was, recall, largely a response to President Trump’s comments to the Wall Street Journal about the US Dollar being too strong and his preference for low interest rates.