Japanese Yen (Jpy)
BEs adopted a newfound attitude after the Fed ruined the day yesterday, lending solid support to today’s $14bn 10y TIPS reopening.
Listing of structured bonds and vanilla bonds issued in the Asia Pacific markets over the past week.
The Fed/Powell’s more decisive taper talk at today’s FOMC decision scared BEs lower amid better RY selling. 10y TIPS auction now eyed.
Longer JPY swap spreads have eased slightly as the market awaits today's BOJ announcement.
Risk sentiment stabilized after yesterday’s scare but BEs were sticky today, reluctant to join the modest risk-on move despite the Fed’s help.
JPY swap flow has been light after the long weekend break. Market volatility is not expected to rise near-term.
JPY swaps have been better bid following good US data. The steepness in 2s/10s has limited strong paying in 10-year.
The BEs curve steepened with tenors beyond the very front-end getting a modest bump higher amid many cross-currents.
JGB future is weaker despite disappointing domestic data. The slope at the long-end is too steep and some players expect some flattener interests.
The JPY swap curve has followed the USD rates curve flatter, as the market reduces its bet on a near-term tightening by the US Fed.