Swaps - JPY
7-10y JPY swaps have been well offered after the interest rate decisions by the ECB and the BOE. The yen's strength has triggered front-end flow.
Hints from the BOE that sterling rates are near their peak helped global fixed income bull-steepen. But banks expect two more hikes from the Fed.
More Kangaroo bonds with KfW raising AUD550m via a new 6-year deal. ANZ sold EUR and USD bonds in size, and NAB has tapped the Dim sum bond market.
The FOMC sentiment has sent the yen stronger and backed demand for SL JPY swaps. 10s/20s flattened out despite good amount of receiving in 10y.
Long-dated JPY swaps have been offered in cautious trades ahead of the FOMC. Japan will likely issue the world's first sovereign transition bond.
JGB future closed weaker despite BOJ's 5y loan offer. 10y swaps have reacted more to domestic data and were mostly bid.
2y JPY swaps were bid after news about the BOJ and the Japanese government should make a new joint statement. Barclays sees long-end flatter.
Strong Tokyo CPI data has triggered another wave of selloff in JPY rates. 5-10y swaps have been well bid and the curve steepened up.
JPY swaps have been bid despite earlier gains in the underlying cash bond market. Good 10y bid has steepened 2s/10s and 5s/10s further.
The JPY rates market lost its winning streak as Japanese equities spiked. 5-10y swaps have been bid with 10y underperforming other maturities.