There has been trade in JPY forward spreads amidst a lack of price action. Japanese lifers are buying JGBs on the divergent Fed-BOJ outlook.
There has been interest in AUD curve spreads as the flattening trend is examined. LBBW issued a 3-year bond.
USTs saw a relatively modest range amid tempered equity price action, but sources are wary. Swap spreads narrow. Citi examines US/WN spread drivers.
Both gamma and vega are lower amid lower delivereds and more rangebound underlying rates. 5y10y, 1y20y traded down. Citi examines vol ratio signals.
BOE Governor Bailey defended the MPC in this time of ballooning inflation, allowing gilts and linkers to retain gains at the close. BofA eyes RPI.
Recent structured note activity in USD, CAD and EUR.
The 1m expiries posted biggest gains. Further out, the belly outperformed. Bottom right vega troughs out.
Only $21.7bn managed to price in IG (ex-SSA) last week. $30bn expected this week as some of the backlog looks to clear amid fragile conditions.
Last week’s UST rally has yet to extend as a busy week of domestic potential market-moving events awaits. BNPP looks at the Fed's plans.
The sharp tightening in Bund ASWs continued today. ESM is pricing €2bn 5y and the new issue pipeline is building up with plenty of deals.
ESM is pricing €2bn long 5y, Suez is working on a three-part euro deal, plus EIB has mandated banks for a 10y Climate EARN.
here has been light trade in long JPY swaps. A 10y JGBi auction is being held today. Toyota is planning to sell Sustainability Bonds.
AUD swap spreads have eased slightly as the market awaits the release of minutes from the RBA's May meeting.
With risk assets ending the week on somewhat firmer footing, USTs yields have reverted higher. BofA still sees a role for duration in portfolios.
Structured note issuance over the last week in euros was mainly bank callables with a number of 15y to 20y deals offering coupons over 3%
Gilts staged a bearish reversal while traders discuss 5y ASWs. And RPI reform - the topic that won't die - is being challenged. Barclays explores.
The plunge in Bund asset swaps from the wides has extended - traders and banks look at the drivers and ask where spreads are heading next.
The overall market direction this morning was set by an equity rebound led by tech. Traders mull possible FX-driven and new issue pressure on spreads
10-year JPY swaps have been outperforming other maturities on the rally, supporting further steepening at the long-end of the curve.
AUD swaps have been well offered with swap rates down more than 10bps. The futures curve steepened up to above 50bps, and the EFP box flattened more.