Cross-Currency Weekly

The Mizuho Cross-Currency Weekly analyzes a busy macro week where EURUSD XCCY outperformed and the curve steepened, while GBPUSD basis reacted to UK political pressure.

Key Takeaways

• 1.EURUSD XCCY outperformed and the curve steepened, likely driven by non-EUR investor demand for EUR assets and a rally in USD rates.
• 2.GBPUSD XCCY basis was better received due to ongoing UK political instability and significant GBP issuance from Europe.
• 3.USDJPY activity remained subdued but may see receiving flow from a potential $550bn US-Japan deal if JBIC uses MOF loans.

Table of Contents

• Week 30 January – 6 February
• Commentary
• Notable cross border issuance
• Appendix 1: Government bond Asset Swap levels
• Appendix 2: JGB and JPY SSA ASW monitor
• Important Information
• Disclosures required under the EU Market Abuse Regulation (EU596/2014) in respect of "investment recommendations"
• Disclaimer

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