Swaps - CNY
The PBOC cut 1- and 5-year loan prime rates today, triggering thoughts about a better prospect and thus some paying in 5-year NDIRS.
Listing of Asia Pacific bond issues likely to create hedge requirements across rates markets.
The Chinese market re-opened today. The coronavirus outbreak has prompted panic selling of equities and sharp bull-flattening of the NDIRS curve.
China's liquidity add was widely expected but still provided support for global risk assets. Dollar spreads tightened as dealers await issuance.
CNY NDIRS has generally been better bid except some early receiving interest in 5-year. Paying in 1-year has flattened the 1s/5s NDIRS slope.
The Autumn sea of GBP, USD and, especially, EUR issuance has receded, elevating to visibility something of a bounce in JPY-denominated basis activity.
The busiest day for EUR issuance since September saw the EUR/USD basis swaps curve find itself under downwards pressure in the morning.
Traders reported good 10y and 30y EUR/USD flow this morning, while elsewhere they were sceptical about Eurex's clearing breakthrough.
An impressively busy day once more for new issuance saw the shadow of Italy’s $7bn 3-part cast over much of the curve.