Bonds - JPY
Listing of structured bonds and vanilla bonds issued in the Asia Pacific markets over the past week.
JGB issuance has increased significantly following Japan's second supplementary (COVID-19 response) budget. Who will absorb this extra issuance?
In a year of statistical firsts a flatter basis swaps curve will not earn a ‘Bong’ moment on the ITV news, but gamma flow is weighing heavily upon it.
Japanese PM Abe has said the COVID-19 situation is not yet an emergency. Indian Railway Finance Corp launched a Samurai Bond deal.
On Tuesday the Japanese MOF issued JPY1.2trn in 20-year JGBs at a well-received tender operation.
There has been trade in long swaps and the 10s/20s curve has steepened ahead of the 20-year auction. Superlong asset swaps are expected to correct.
Superlong JPY swap spreads have cheapened and the 10s/20s curve spread has steepened ahead of new 20-year JGB supply tomorrow.
Listing of structured bonds and vanilla bonds issued in the Asia Pacific markets over the past two weeks.
The BOJ issued an unchanged policy statement and downgraded its growth and inflation forecasts. Governor Kuroda's press conference will follow.
There has been foreign driven flow in long JPY swaps as the market looks ahead to the BOJ policy announcement and Outlook report release tomorrow.