Swaps - JPY
Domestic and overseas data has prompted better paying interest at the long-end of the JPY swap curve. 2s/10s swaps are steeper.
10y JPY-USD swap spread has tightened to a level that may soon trigger receiving in 10y JPY swaps. 20y saw light offered-side flow at the open.
JPY swap spreads have steadied and ticked slightly higher ahead of a 10-year JGB auction today. Tokyo CPI printed above expectations.
The 20y swap spread has cheapened. A Tibor/Libor trade has been proposed. The recent bout of yen strength has slowed.
The sharp strengthening of JPY has prompted receiving at the long-end of the JPY swap curve. 2s/10s swaps are now too flat.
There was light receiving in 7y JPY swaps ahead of domestic jobs data. The strength in JPY has backed some price action at the front-end of the curve.
JPY swaps have been cautiously offered amid ongoing worries over COVID-10. Fitch has downgraded Japan's IDR to negative.
The 10s/20s JPY swap curve spread has traded down and USD/JPY is at a 4m low on safe haven flow. Carry is expected to support the super long sector.
Japanese PM Abe has said the COVID-19 situation is not yet an emergency. Indian Railway Finance Corp launched a Samurai Bond deal.
10- to 20-year JPY swaps saw light paying after lunch break. Cash surplus will likely drive demand for superlong JPY rates.