Swaps - JPY
JGB future is weaker today but swaps have seen limited paying after easing measures from the Chinese central bank.
Better-than-expected trade data in Japan has prompted some cautious paying in the 10- to 20-year of the JPY swap curve.
The BOJ has warned Japanese banks to speed up their LIBOR transition preparations.
The 10y JPY swap spread has made new lows on long-end receiving ahead of the 5y JGB auction. The BOJ says the coronavirus could trigger more easing.
10y JPY swaps have been offered after the release of a very weak Q4 GDP report. 20y JGBs have richened on the curve ahead of new supply this week.
JGB future extended losses today, prompting light paying in JPY 20-year swaps. 10-year, however, saw early receiving.
The early rally in JGB future saw light paying in the swap market, as players were concerned about the surge in new cases of coronavirus infections.
Listing of Asia Pacific bond issues likely to create hedge requirements across rates markets.
JPY swaps saw better paying interest at the long end of the curve, amid a slight relief on concerns over the coronavirus outbreak.
The 30y JPY spread dipped to a 2y low this morning. GPIF offset bond losses with equity and currency gains. Japan has been urged to issue digital yen.