Domestic and overseas data has prompted better paying interest at the long-end of the JPY swap curve. 2s/10s swaps are steeper.
Listing of structured bonds and vanilla bonds issued in the Asia Pacific markets over the past week.
The return of RBA bond purchases Wednesday triggered a mild AUD rates sell-off. A 5s/10s curve trade has been proposed. SAFA issued a AUD1bn 12y bond.
TIPS BEs have driven higher in a flattening move led by the front end of the curve, and followed by continued 5y outperformance. RY buys are driving
Update on today's new issuance.
Vega barely budged despite two larger ZCs - from Citigroup and BMO. Recent trades in 5y10y and 10y10y were off the back of the supply.
Gilts joined in with global bear-steepening today as the US confirmed a big rise in long end supply. Elsewhere, the pace of BOE tapering is discussed.
Recent structured note activity in USD and EUR.
Recent structured deals include another big inflation-linked repack, a century tap and a choice selection of callables.
Bear steepening before the refunding announcement was not repudiated. Many issuers are staying in fixed due to the record low coupons.
The curve is steeper and spreads are in as risk assets gain ahead of the Treasury refunding announcement. Banks look at SOFR. More Formosas print.
Traders attributed today’s steeper curve and bearish tone to thin summer markets and central bank buying rather than any correlation with stocks.
10y JPY-USD swap spread has tightened to a level that may soon trigger receiving in 10y JPY swaps. 20y saw light offered-side flow at the open.
Short AUD swap spreads are lower and the box has pushed above 1bp. The RBA left its rates targets unchanged and resumed its bond purchases today.
The BE curve is flattening today, with intermediates maturities bettering long term BEs. Source see client driven inflows, interest in the 5y sector
Update of today's USD issuance pricings.
3m expiries jumped 2.5 to 5.7 normals higher today, as the expiry now includes the Nov 3rd Election Day. Not much traded in 3m expiries, however.
Recent structured note activity in USD.
A bounce in oil prices from session lows helped to support the front of the euro inflation curve today. Ahead, banks mull linker issuance.
A day of strong moves in gilts either side of supply and demand bursts saw sterling fixed income follow the risk-off trend. Ahead of the MPC.