Yields drift higher into year-end

Notes/Observations - Japan's core CPI lifted above 1% for first time since 2008; Nikkei225 Index eeks out fresh 6-year high while USD/JPY tested 105 - Japan Dec Manufacturing PMI registers its10th straight month of expansion and highest reading since July 2006 - Italy year-end auction sees borrowing costs rise to multi-month highs - US and UK 10-year govt bond yields test above 3.00% - Geopolitical developments worth noting into year-end. Situations continue to simmer in both Thailand and Reported by FXstreet.com 7 hours ago.