JPY Swaps: Longs briefly offered; JGB future weaker after China data

Japan Shrine
Strong China trade data has triggered a selloff in the JPY rates market. Long-dated swaps were bid although there was also some brief receiving.

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  • JGB future loses steam after China trade data

  • Longs briefly offered; Long-end flatter

  • New issues


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JGB future loses steam after China trade data

JGB future was firmer in the morning, after data in overnight trading showing cooling inflation in the US. The lead bond future was up by 16-ticks soon after market open, but lost steam in the afternoon session as data from China showed that the country saw a surge in exports in March, widening the trade surplus by more than five folds. This suggested a strong recovery in China and will likely benefit the economy in Japan. JGB future fell by 9-ticks soon after the data, but finally closed the day just a tick lower of 147.67. The yield on the benchmark 10-year JGB was half a basis point lower at 0.458%.




Longs briefly offered; Long-end flatter

Swaps trading has been mostly around the longer-end of the curve. A dealer reported paying in 10-year at about 2bps higher at the open, which was replaced by some brief receiving at down to 2.75bps lower after lunch break. Paying there then resumed and it was last seen traded 3bps higher of 0.6675%.


Moving up the maturity spectrum, 20-year was offered down about a basis point intraday being traded 2bps higher of 1.04% soon after lunch break. 30-year has been mostly better offered on the day and traded down to 2bps lower at 1.065% in the afternoon session before being marked 1.5bps lower at time of writing.


10s/20s and 10s/30s flattened out by 1bp and 1.5bps to 37.5bps and 43.5bps respectively.



New issues

  • AEON Mall Co Ltd sold JPY40bn in 0.76%, April 28, 2028 bonds.


  • Kyoto Prefecture priced JPY15bn in 0.299%, April 24, 2028 bonds at JGBs + 15.5bps.