- 10-20y given; Currency move backs steeper 2s/10s
- New issues
Click here for SDR JPY IRS trades
10-20y given; Currency move backs steeper 2s/10s
JGB future rebounded today, tracking the move in the USD rates market which was firmer ahead of the CPI data and as players bought safe-havens after weaker-than-expected China inflation data. Dip-buying has also contributed to the rally in the JPY rates market today, according to a dealer.
The lead bond future, which fell below 148 to close 147.55 yesterday, was 13-ticks higher at 147.68 in mid-afternoon Tokyo trading. The yield on the benchmark 10-year JGB was half a basis point lower at 0.453%.
The JPY continued to strengthen against the USD. The pair has been on a downtrend since overnight trading and fell to levels below 140.6 in domestic trading today. These compared to those traded above 144.5 last week.
The superlong-end of the curve saw more confident receiving interest amid the move in the currency market. A dealer reported some decent amount of offered-side flows in 20-year since market open. It traded down to 1.25bps lower of 1.035% around mid-day, after being traded in a tight range around 1.04% in the morning session.
10-year swaps have been offered too. It was last seen changing hands 2.5bps lower of 0.6375% before being marked unchanged at time of writing.
Stronger yen has backed some price action in 2-year. 2s/10s swaps therefore steepened up by a basis point to 57.75bps.
- JACCS Co Ltd raised JPY29bn via selling the following bonds:
- JPY3bn, 0..813%, July 18, 2030 at JGBs + 55bps.
- JPY26bn, 0.555%, July 16, 2027 at JGBs + 52bps.
- JFM sold JPY60bn worth of bonds as follows:
- JPY25bn, 1.156%, July 28, 2043 at JGBs + 7.5bps.
- JPY35bn, 0.663%, July 28, 2033 at JGBs + 21bps.
- Nissan Financial Service issued JPY70bn worth of bonds as follows:
- JPY30bn, 0.834%, June 20, 2028 at JGBs + 70bps.
- JPY40bn, 0.52%, June 19, 2026.