AUSSIE BONDS: AOFM Weekly Issuance Slate

Feb-03 01:04

The AOFM has released its weekly issuance slate:

  • On Wednesday 8 February it plans to sell A$1.0bn of the 3.00% 21 November 2033 Bond.
  • On Thursday 9 February it plans to sell A$500mn of the 12 May 2023 Note, A$1.0bn of the 9 June 2023 Note & A$500mn of the 7 July 2023 Note.
  • On Friday 10 February it plans to sell A$500mn of the 2.25% 21 May 2028 Bond.

Historical bullets

JGBS: Curve Twist Steepens, Futures Bounce

Jan-04 00:51

JGB futures bounce from the lows witnessed in the final overnight session of ’22, and now operate close to levels seen at the end of the final Tokyo session of last year, +25 on the day.

  • Futures have drawn support from the bid observed in the global core FI space over that horizon, while cash JGB trade is a little more mixed, adjusting for the weakness in cash Tsys into NY and the subsequent bid in core global FI since. That leaves the major JGB benchmarks running 1.5bp richer to 1.5bp cheaper. Shorter dated paper is little changed, while 7s outperform and 10+-Year paper cheapens.
  • 10-Year JGBs sit ~6bp below the BoJ’s YCC limit, last printing around 0.44%.
  • The previously outlined hawkish press speculation surrounding the BoJ (covering possible inflation forecast tweaks and the potential successor to Governor Kuroda) may also be providing some pressure for the longer end of the curve.
  • It is also worth noting, as we flagged elsewhere, Japanese MoF data covering the week ending 23 December revealed the largest ever round of net weekly sales of Japanese bonds on the part of foreign investors (Y4.8623tn), with the BoJ’s surprise tweak to its YCC settings facilitating those particular flows.

US TSYS: Marginally Cheaper Start

Jan-04 00:17

Cash Tsys have opened 0.5-1.5bp cheaper, with some light bear steepening apparent, as local participants fade the richening seen on Tuesday. TYH3 deals at 112-28, +0-07+, in the middle of its narrow 0-02+ range. A thin data calendar in Asia-Pac hours leaves participants on headline watch.

JAPAN: Foreign Investors Sell Record Net Amount Of Japanese Bonds After YCC Tweak

Jan-04 00:11

Japanese MoF data covering the week ending 23 December revealed the largest ever round of net weekly sales of Japanese bonds on the part of foreign investors (Y4.8623tn), with the BoJ’s surprise tweak to its YCC settings facilitating those particular flows.

  • Elsewhere, Japanese net sales of international bonds continued for a third straight week (and the eighth week in nine) but moderated a touch in net terms (Y459.5bn).
  • Japanese net purchases of international stocks were registered for a fourth straight week, although net levels weren’t particularly standout (Y517.1bn).
  • Finally, international investors were small net sellers of Japanese equities for a second consecutive week (Y265.1bn).