JPY Swaps: Longs given; Yen move backs steeper 2s/10s

Japanese Yen
Dip-buying has contributed to some of the demand in JPY rates. Long-dated swaps were offered, and the yen move has backed a steeper 2s/10s slope.

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  • 10-20y given; Currency move backs steeper 2s/10s

  • New issues


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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.



New issues

  • 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.