Bonds - JPY
With fears of a year-end liquidity squeeze ebbing fast, the very front end of the core basis swap markets all leapt higher this morning.
An update on the latest non-government bond issuance from the Asia Pacific region.
Longer JPY IRS clearing basis has pushed into positive territory as the market looks ahead to the 20-year bond auction today.
JPY swaps have been bid in the belly of the curve ahead of the 5y auction. The 10y JGB yield is in positive territory for the first time in 9 months.
Long JPY swaps have been bid after firm GDP data backed a JGB sell-off. The latest fiscal stimulus package is expected to ease pressure on the BOJ.
Listing of non-government, non-vanilla bonds issued in the Asia Pacific markets over the past week. Banco Santander issued a rare Samurai Bond.
There has been trade in JPY forwards ahead of the 10-year auction. The 30y swap spread is approaching zero. The BOJ has warned about a yield spike.
Listing of non-government bonds and structured notes issued in the Asia Pacific region over the past week.
The 40-year JGB auction was well received but issuance could weigh on ultralong yields longer term. Banco Santander is planning a Samurai Bond issue.
There has been trade in the 10s/20s JPY spread amidst calls for the curve to hold steady into year-end. The IMF says the Japanese economy is solid.