Japanese Yen (Jpy)
MRAC has set November 8th as the date for switching interdealer trading conventions from LIBOR to the SOFR for USD non-linear derivatives.
JGB future is firmer despite a rally in the Nikkei. The swap curve has ceased from flattening further.
BEs used CPI tailwinds, risk-on sentiment and higher energy prices to continue recent bull-flattening. PPI hit the tape. 5y TIPS auction announced.
The JPY swap curve has followed the USD rates curve flatter. 5-year JGB auction saw satisfactory demand.
Today’s Sept. CPI showed that ‘transitory’ inflation still stubbornly appears to be sticking around, bull flattening the BE curve in choppy fashion.
The long-end of the JPY swap curve saw very cautious receiving, as the recent weakness in the JPY may trigger an upward move in long-dated swap rates.
Ultralong JGBs have been cheapening in recent months and the 30y yield is approaching the key 0.70% level ahead of today's auction.
Long JPY swap spreads and clearing basis levels are edging wider. 20y asset swaps are seen outperforming as yields rise.
Today’s NFP print sent BEs drifting higher as nominals sold off again, extending the recent bullish price action for inflation. More on the EBRD deal.
The JPY swap curve steepened up to the backend ahead of the monthly US jobs data. Players have revised their expectations on 2s/10s.