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USD Funding Fears See Some Asian Spill-Over

CREDIT MACRO

CROSS ASSET: Contained Signs Of USD Funding Worry Potentially Seen In Asia


USD funding matters got some attention in Asia. We flagged the spill over into x-ccy basis in the wake of the initial round of NYC Bancorp worry (as footprints of USD demand showed up via those channels). That move evaporated (in 3-month tenors), but a fresh, albeit shallow, downtick in JPY/USD 3-month x-ccy basis has been seen, pointing to some potential worry on that front out of Tokyo.

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