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2024

2023

  • Daiwa's View - Implications from 20yr LCH-JSCC spread, more negative swap spreads

    Daiwa's View - Implications from 20yr LCH-JSCC spread, more negative swap spreads

    11 July 2024 701 KB PDF
    • 20yr swap spread deeply negative, 20yr LCH-JSCC spread below -2bp
    • Signals attractiveness of asset swaps, superlong JGB auctions’ potential reliance on arbitrageurs
    • May also indicate need to issue shorter maturity JGBs
  • Daiwa's View - BoJ holds “Bond Market Group” meeting

    Daiwa's View - BoJ holds “Bond Market Group” meeting

    10 July 2024 354 KB PDF
    • BOJ released “Responses to Opinion Inquiries” and “Examples of Specific Opinions” to share opinions received at meeting
    • Left impression that many opinions were covered in published materials; no particular consensus was formed
    • BOJ officials expected to make final decision on proposed JGB purchasing reductions, focusing on these proposals, while monitoring balance between predictability and flexibility
  • Daiwa's View - Revising forex outlook to reflect pickup in carry trades
  • Daiwa’s View

    Daiwa’s View

    27 June 2024 504 KB PDF
    • What has, will, and won't return to pre-QQE levels
  • Daiwa's View

    Daiwa's View

    20 June 2024 592 KB PDF
    • MOF is expected to consider optimizing JGB issuance maturities 
    • Positive in terms of (1) relationship with BOJ’s policy of reducing JGB purchases and (2) fundamental measures for coping with structural changes among investors
    • Combination of QT and fiscal expansion was potential threat to JGB term premium, but concerns have diminished
  • Daiwa's View

    Daiwa's View

    11 June 2024 705 KB PDF
    • BOJ’s next move at Jun meeting: Likely to discuss JGB purchase reductions
  • Daiwa's View

    Daiwa's View

    14 May 2024 357 KB PDF
    • Did 13 May reduction in JGB purchases signal change in monetary policy stance?
  • Daiwa's View

    Daiwa's View

    9 May 2024 1200 KB PDF
    • Outlook for Japanese and US Yields in FY24