Swaps - JPY
Slightly disappointing domestic trade data has promoted slightly better receiving in long-dated JPY swaps, despite a rally in equities.
Wide JPY-USD spread has deterred strong receiving interest in 10y JPY swaps. Players are on a wait-and-see mode about the steepening in 10s/20s.
The 30y JPY swap spread has traded to its richest level in over 6 months. There has been speculation about the BOJ widening its 10y YCC target band.
The JPY rates market saw a selloff, and longer-dated swaps have been bid. Market participants believe the JPY rates curve to steepen further.
Weak US jobs data has backed receiving interest in 10-year JPY swaps. 30-year, however, saw light paying.
Trading in swaps has been around the longer-end, with mostly 2-way interest in the 10- to 20-year zone. 10s/30s swaps are steeper.
A Japanese FSA announcement spurred Social Bond activity. Listing of structured bonds and vanilla bonds issued in the Asia Pacific markets.
Despite losses in US treasuries, JPY swaps saw better receiving especially at the longer-end of the curve. 10s/20s swaps seen flatter.
The 30y JPY swap spread is at its richest point in about 6 months. Japan's latest COVID support measures won't require another budget.
The steepness in 2s/10s swaps has deterred strong paying in 10y. 10s/20s steepened to new high due to 20y bid.