Swaps - JPY
Trading in JPY swaps has been cautious with only light paying in 10-year in earlier trading. 2-year flow has flattened 2s/10s swaps.
10-year JPY swaps saw light paying before turning offered after mid-day. 10-year JGB yield fell to below 0% again.
Listing of Asia Pacific structures and vanilla bonds sold by offshore issuers.
The Nikkei spikes and prompted paying from the 10-year point of the JPY swap curve. Tight JPY-USD spread has limited paying in 10-year.
JPY swap spreads have narrowed despite the underlying rally. A bullish superlong sector case has been made. USD/JPY basis has corrected higher.
The JPY rates curve is bull flattening after the BOJ upped its JGB purchases earlier today. PM Abe wants an Olympics decision as soon as possible.
JGB future closed more than a point lower after a short-lived rally. Long swaps are paid up a few basis points and the curve steepens up further.
Listing of structured bonds and vanilla bonds from offshore issuers in the Asia Pacific currencies over the past week.
JPY swap curve from the 10-year point steepened up markedly after news about stimulus and relieving measures in Japan amid the coronavirus outbreak.
JPY swaps spreads and clearing basis have edged up after the BOJ emptied its monetary policy tank through asset purchases and liquidity measures.