Swaps - JPY
JPY rates market was weaker after domestic and US data. Swaps from the 10-year point were bid but there was earlier offers in 5-year.
There has been trade in super long sector of the JPY swap curve. Extra bond issuance will test the BOJ in the coming months. CACIB sold Samurai Bonds.
QUICK is now publishing prototype alternative JPY LIBOR rates. Extra virus-related issuance is not expected to increase interest rate volatility.
Longer JPY swaps have been better offered ahead of a 40-year JGB auction this morning. The BOJ is prepared to counter negative virus effects.
The long-end of the curve has steepened in calm trade. Japan's government and central bank have pledged a continued joint coronavirus response.
10-year JPY swaps have been offered after domestic data and on worries over the global economy. There was earlier receiving in the 2- to 7-year area.
Weak domestic trade data has backed receiving interest in the 5- to 10-year area of the swap curve. 20-year offers emerged around lunch time.
Listing of structured bonds and vanilla bonds issued in the Asia Pacific markets over the past week.
JPY swaps saw light receiving in the 5- to 10-year area, ahead of the 20-year UST auction tongith Asian time.
A 30-year JPY swap spread trade idea has been proposed. We also look at how and where the second supplementary budget is expected to impact issuance.