The yield curve resumed its recent flattening trend as yields at the short fell less than those at the long end. Short term rates were supported by the release of domestic CPI data which did not add to the case for lower official rates and the Bank of Japan’s decision to have negative official rates led to bond yields falling globally towards the end of the week. US 10 year bond yields also fell on the back of a bounce in the oil price early in the week which drove our bond market a bit lower. The 3y/10y bond spread fell back 3bps to 77bps as 3 year yields fell 6bps and 10 year yields fell 9bps. The spread is back below bottom of the 80bps and 90bps in which the 3y/10y bond spread has mostly ranged since mid-August.