JPY Swaps: Light 10y offers; Japan plans bridge bonds to stem falling birth-rate

Kyoto bamboo forest
The JPY rates market was little moved with light offers in 10y swaps. The country is planning bridge bonds to fight falling birth-rate.

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  • Light 10y offers

  • Japan to sell bridge bonds for fight falling birth-rate

  • New issues – NDF 2y bonds in size


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Light 10y offers

JGB future hovered around previous close in the morning session, and fell by 7-ticks after lunch break before recovering to a tick higher of 148.69 in mid-afternoon Tokyo trading. The news about RBNZ signalling the end of the tightening cycle had failed to trigger any strong appetite in JPY rates, as players were cautious amid the ongoing debt-ceiling negotiation event. The yield on the benchmark 10-year JGB was half a basis point higher at 0.4%.


Trading in swaps has been very subdued. A dealer reported light trade flow in 10-year and it traded mostly between 0.57% and 0.5725%, down from yesterday’s close of 0.58%. At time of writing, it was marked 0.575%, and 2s/10s swaps were 0.5bp steeper at 49.75bps.



Japan to sell bridge bonds for fight falling birth-rate

Domestic newspaper Yomiuri Shimbun reported that Japan is planning to sell bridge bonds to fund measures targeting to stem the country’s falling birth rate. The bonds will be around 2-year.


Earlier this year, Prime Minister Fumio Kishida warned that the period to 2030 would be the “last chance” to reverse a falling birth-rate in Japan that was threatening the country’s long-term economic prospects. According to Kishida, there would be extra support for young families with children and other measures such as an enhanced childcare allowance, a reduction in educational costs and higher wages for younger workers.



New issues – NDF 2y bonds in size

  • Electric Power Development Co Ltd raised JPY20bn via selling 0.93%, May 20, 2033 bonds.


  • Nuclear Damage Compensation and Decommissioning Facilitation Corp (NDF) sold JPY150bn in 0.001%, June 20, 2025 bonds.