JPY Swaps: Bond future trims gains; Early 10y offers; 2s/10s steeper

Japanese Gate
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JGB future rallied hard in the morning but trimmed gains after lunch break. There was some earlier 10y offers but 2s/10s swaps were steeper.

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  • JGB future trims gains; Light early 10y offers

  • New issues

 

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JGB future trims gains; Light early 10y offers

JGB future rallied by 31-ticks soon after market open, tracking the gains in the USD rates market, which was in turn driven by players pricing in less chance for further aggressive US Fed hike following week domestic data.

 

The gains were however not sustainable and after lunch break the lead bond future was mostly less than 10-ticks higher before closing the day only 3-ticks higher at 147.51. The yield on the benchmark 10-year JGB was a basis point higher at 0.414%.

 

Players noticed a rather subdued session in swap trading. A dealer attributed that to traders taking extra days off for an extended Easter break. Of course, market participants preferred to be on the sidelines ahead of the monthly US jobs data due late this week, as it would shed some light on the next possible US Fed move.

 

The source reported 10-year flow at down to 2.25bps lower of 0.635% at the open. Receiving faded and 10-year was marked a tad higher at 0.66% at time of writing. 2s/10s swaps steepened up by 0.5bp to 54bps.

 

 

New issues

  • Chiba City priced JPY10bn in 0.770%, March 18, 2033 bonds at JGBs + 30bps.

     

  • Chiba Prefecture raised JPY40bn via selling bonds in two equal tranches as follows:

     

    • 0.309%, February 25, 2028 at JGBs + 15.5bps.

    • 0.765%, March 25, 2033 at JGBs + 30bps.

     

  • JEHDR issued JPY75bn in 0.251%, February 28, 2028 bonds.

     

  • Kanagawa Prefecture sold JPY65bn worth of bonds as follows:

     

    • JPY20bn, 0.770%, February 18, 2033 at JGBs + 30bps.

    • JPY45bn, 0.304%, February 17, 2028 at JGBs + 15bps.

     

  • Osaka Prefecture issued JPY10bn in 0.751%, March 27, 2033 bonds.

     

  • Saitama Prefecture raised JPY40bn via selling bonds in two equal tranches as follows:

     

    • 0.314%, February 26, 2028 at JGBs + 15.5bps.

    • 0.770%, March 26, 2033 at JGBs + 30bps.

     

  • Shizuoka Prefecture sold JPY20bn worth of bonds in two equal tranches as follows:

     

    • 0.309%, February 17, 2028 at JGBs + 15bps.

    • 0.770%, February 18, 2033 at JGBs + 30bps.

     

  • Yokohama City priced JPY45bn in 0.309%, February 14, 2028 bonds at JGBs + 15.5bps.

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