JPY Swaps: Yen moves drive long-end steeper; 10y linker sale

Japanese Yen
JPY swaps have been slightly better bid, with the yen moves driving some steepening from the 10y point. 10y linker sale today.

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  • Yen move drives curve steeper from 10y

  • MOF sells 10y linkers


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Yen move drives curve steeper from 10y

JGB future has followed the USD rates market weaker, as players sold off safe-haven assets ahead of the outcome of the debt-ceiling negotiation. The selloff in the lead bond future deepened after lunch break, and was down almost 20-ticks at 148.63 intraday. The yield on the benchmark 10-year JGB was marginally higher at 0.39%.


Trading in swaps has been very subdued. Players reported very light paying interest in 10-year in the morning session with little real trades realised. 10-year was marked 1.5bps higher at 0.57% at time of writing, steepening 2s/10s swaps by 0.75bp to 48.75bps.


Elsewhere, the JPY depreciated against the USD to levels near 138.9 in domestic trading has backed some price action at the superlong-end of the curve.  20- and 30-year swaps were both marked around 2bps higher at time of writing, and 10s/20s and 10s/30s swaps were both 0.5bp steeper at 37.75bps and 45.25bps respectively.



MOF sells 10y linkers

Earlier today, the MOF sold JPY249.8bn worth of its JPY250bn 10-year 0.005% inflation-linked JGBs (Number 28) at tender. The auction drew bids worth 3.5 times, up from 3.06 times last month. Average yield was -0.595%.