OVERNIGHT MARKETS AND NEWS

The dollar index (DXY00 -0.35%) is down -0.27%, but remains above Monday's 3-year low. EUR/USD (^EURUSD) is down -0.30%. USD/JPY (^USDJPY) is up +0.08%.

Mar 10-year T-note prices (ZNH18 +0.13%) are up +6 ticks as they move higher on carry-over strength from a rally in German bunds.

Reuters reports that three unidentified people with knowledge of the matter said the ECB is unlikely to drop a pledge to keep buying bonds at the Jan 25 meeting as rate-setters need more time to assess the outlook for the economy and the euro. Any fundamental change to guidance is likely to come later with the Mar meeting as the more likely option.

The German Dec wholesale price index rose +1.8% y/y, the smallest year-on-year increase in 13 months.

UK Dec CPI rose +0.4% m/m and +3.0% y/y, right on expectations. The Dec core CPI rose +2.5% y/y, weaker than expectations of +2.6% y/y.

Japan Dec PPI rose +0.2% m/m and +3.1% y/y, weaker than expectations of +0.4% m/m and +3.2% y/y.