Losses in the USD rates market and weak JGB sale have prompted a selloff in the JPY rates market. Light 10y bid has steepened up 2s/10s.
Losses in the USD rates market have prompted a similar move in Australia. 3-10y swaps were bid and EPFs were tighter across the curve.
The upper end of the rate range has continued to be breached, blasting long end rates and forwards higher. $3.4bn priced in IG from Yankee FIGs.
The double digit bear steepening move has pushed the vol surface higher, led by the right. Vega is also higher on the day. Skew switches deal.
Recent structured note activity in USD.
Callables and repacks made up the bulk of euro structured note issuance over the last week.
Gilts sagged under the weight of supply during a soggy session for long-dated fixed income globally.
Just over $16bn priced in IG new issuance over the past week (ex-SSA) – on the lower end of forecasts. A similar amount is expected for this week.
Global fixed income has bear-steepened today, while strategists at BofA find recent price action in long-end euros to be puzzling.
A weekend of hawkish contemplation followed a week in which rising oil prices threaten more upwards pressure on inflation helped UST yields soar.
Banks and corporates are working on new euro deals including ING and Carlsberg.
There has been some flow in 10y ahead of some key domestic data. 10s/20s flattened out and BNP closed its 2s/5s/10s trade.
The AUD rates market was firmer as it tracked the move in the USD market. There has been receiving at more liquid tenors ahead of domestic data.
The nascent early bid in USTs has persisted into the afternoon amid a govt shutdown threat and UAW strike. BofA sees rates up until equities drop.
The Bund made a round trip today, while strategists look at value in Euribor flatteners.
The gilt curve drifted steeper after PMI data came out weak this morning.
The UST market was looking to drift higher in yield overnight until European PMIs turned the tide. Traders eye steepening.
The JPY rates market rallied after earlier selloff. The swap curve then flattened out to 7-10y as there was no BOJ hawk.
The AUD rates market has followed the USD market lower. 10y bond yield hit its 9y low, and key EFPs tightened to fresh low despite swaps bid.
Long end yields pulled higher as bond markets adjusted to a softer landing outlook and higher yields for longer. Barclays closes out its 2y short.