March 14, 2023 02:05 GMT
Weakest Link In G10 Space As US Yields Firm
USD/JPY is finding some support, the pair touching a session high near 133.95. We are now back at 133.70/75, still +0.40% firmer for the pair for the session. Yen losses are slightly shading the AUD for the worst performer tag within the G10 space so far today.
- The US-JP 10yr swap spread is re-widening, back out to +273bps, the closing low at the end of last week was +259bps, see the chart below. Japan 10yr swap rates are off lows for the session where were close to 50bps, last around 56bps. The US rebound has been larger though, back to 328bps, from Monday intra-day session lows around 307bps.
- In terms of levels, note the 20-day and 100-day EMAs are fairly close to 135.00 for USD/JPY. This also coincided with highs during yesterday's session. Lows for today come in at close to 133.00.
Fig 1: USD/JPY Versus US-JP 10yr Swap Spread
Source: MNI - Market News/Bloomberg
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