Swaps - JPY
There has been cautious paying in JPY swaps after data from the US. The belly has been bid, and 2s/10s swaps are due to correct steeper.
Superlong and ultralong JPY swap spreads have dropped to their cheapest levels since the beginning of the year.
JPY IRS clearing basis has dipped back below zero. Superlong swap spreads are seen widening. The. BOJ is scheduled to meet later this week.
JPY swaps saw good amount of receiving after US CPI data. 10-year JGB yield hits recent low and 2s/10s swaps are at their key psychological level.
JPY swaps have been offered ahead of the potentially strong US CPI data, as players are concerned about a scale back of US monetary policy.
Trading in JPY swaps has been cautious ahead of the US CPI data. 10y has been offered and the FX outlook has prompted flattening in 10s/20s.
There has been flow in longer JPY swaps and forwards. Growing market dysfunction has triggered superlong sector concerns. Orix issued 5-7y bonds.
There has been trade in long JPY swaps and 3-6m forwards. Japan will issue ultralong JGBs tomorrow and Tokyo is planning a 5y Social Bond issue.
The superlong-end of the JPY swap curve has been bid as players expect a rebound in the Nikkei. There has been some decent amount of 1-year flow.
Despite a weak auction, 10y swaps saw better receiving due to the move in the US treasury market. 5-year has been offered too.