Bonds - JPY
Another day, another session in the basis swaps market dominated by USD issuance by non-US borrowers but extremely well-supported by GBP supply.
Today the BOJ announced a widely expected unchanged monetary policy decision and slightly upgraded its inflation forecasts.
JGB yields have risen sharply this month so 5-year bonds have cheapened significantly ahead of today's auction.
A bearish long-end swaption trade has been highlighted for early-2022. One Japanese bank has promised employees higher wages for next year.
There has been trade in 40y JPY swaps. Japan upgraded its economic assessment. The curve is seen flatter as the BOJ dampens early normalisation hopes.
Swap spreads are marginally firmer in calm JPY rates trade. The BOJ isn't close to considering a monetary policy shift.
Listing of structured bonds and vanilla bonds issued in the Asia Pacific markets over the past week.
Japan's MOF has outlined debt management changes under consideration for the 2022 fiscal year.
There has been light trade in mid sector JPY swaps. Some dealers have asked for more 40y JGB supply.
JGBs have reversed late Friday gains after a firm retail sales report. The latest fiscal package will require JPY22trn in new bond issuance.