Bonds - JPY
Superlong JGBs are seen outperforming in a rangebound environment. An extension in the richening trend could push the 20y swap spread back to zero.
There has been trade in ultralong JPY swaps while 20-30 year spreads have edged up. The newest BOJ board member won't push for more easing.
There has been trade in JPY forwards and spreads have dipped. Nomura pulled a USD bond issue after pricing amidst warnings of significant losses.
Listing of structured bonds and vanilla bonds issued in the Asia Pacific markets over the past week.
There has been flow in JPY superlong swaps and longer spreads continue to push up. Some consider the long-end cheap as a result of pre-BOJ selling.
JPY swap spreads have widened on the rally today after the BOJ widened its bond target range Friday. The superlong sector is seen underperforming.
Borrowers seized the day today in an orgy of issuance that saw corporates at its core. Bids dominated EUR/USD, until they didn't.
There has been trade in JPY forwards and continued focus on the super and ultralong sectors as the market looks ahead to the BOJ meet later this week.
JGBs are correcting after BOJ Governor Kuroda triggered a sharp surge Friday. Long-dated JPY swap spreads are at the top of their recent ranges.
20-year JGB yields are at attractive levels near 0.50%, heights not seen since December 2018, ahead of today's auction.