Swaps - JPY
10- to 20-year JPY swaps saw paying interest although the SL has slightly outperforming the selloff in 10y. 2s/10s steepened up a tad.
JPY swaps saw slightly better paying despite further gains in the US treasury market. The curve steepened up and 20y spread disinverted more.
JPY swap spreads are narrower. Short forwards have been active. On-auction 10y JGBs are expected to underperform but rally further in outright terms.
The long end of the JPY curve has corrected flatter as yields have dropped and swap spreads have widened as 20-30 year JGBs have richened on the move.
7y JPY swaps have been slightly outperforming other maturities. 2s/7s is expected to see further corrective flattening.
The JPY rates market has reversed its early gains as the session has progressed. 10y spreads have cheapened on long-end JGB underperformance.
There has been trade in JPY forward as price action has slowed. The BOJ is monitoring YCC purchases. 10s/20s is steeper on superlong weakness.
Long JPY swap spreads are widening as 10y JGBs outperform on the sell-off due to BOJ bond purchases.
There has been decent trade in JPY swaps and forwards as the market awaits today's BOJ monetary policy announcement.
Today the BOJ announced an unscheduled bond purchase operation after the 10y JGB yield pushed beyond the key 0.25% level Friday.