JPY Swaps: Light 10y offers flatten 2s/10s; Aozora Green bonds

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Trading in JPY swaps has been cautious with some light 10y offers which flattened 2s/10s swaps. Aozora Bank has launched a 3y Green bond offer.

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  • Early and light 10y offers flatten 2s/10s

  • New issues – Aozora Bank plans 3y USD Green bonds


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Early and light 10y offers flatten 2s/10s

JGB future was firmer at the open and was up by 15-ticks intraday, but has lost steam since mid-morning domestic trading. At lunch break the lead bond future was up 3-ticks at 146.64, and the yield on the benchmark 10-year JGB was marginally lower at 0.498%.


Trading in JPY swaps remained cautious and subdued, especially the US market is closed today. Currently, players are skewed towards unwinding of the YCC when the new BOJ chief is on board. This is especially convincing when countries such as the US and the UK are still struggling to contain inflation despite aggressive monetary tightening.


Tracking the earlier gains in the underlying JGBs, 10-year swaps were offered down 1.75bps to 1.8325% in the morning session. It was marked 0.84% at time of writing


Elsewhere, USD/JPY rose to above 134.5 in domestic trading, driving some price action at the front end of the curve. 2-year was marked 0.5bp lower at 0.185%, underperforming the rally in longer-dated swaps. 2s/10s swaps therefore flattened out by 0.5bp to 65.75bps.



New issues – Aozora Bank plans 3y USD Green bonds

  • Aozora Bank Ltd has mandated GS, MS and Citigroup for a USD-denominated 3-year senior unsecured fixed-rate Green bonds in Reg S format.


  • Credit Agricole issued the following Uridashi bonds with semi-annual call at par from February 2024:


    • JPY897m, 0.9%, February 25, 2030.

    • JPY2.28bn, 0.61%, February 25, 2028.


  • Societe Generale sold the following February 28, 2028 Uridashi bonds with semi-annual call at par from February, 2024.

    • JPY1.37bn, 0.72%.

    • JPY7.48bn, 0.67%.