5 Feb 2014
Flash: Negative Uridashi flows for AUD - Nomura
FXStreet (Barcelona) - Yujiro Goto, FX Strategist at Nomura notes that Uridashi issuance slowed to JPY114bn (USD1.1bn) in January from JPY138bn in December.
Key Quotes
“Issuance was the smallest since April 2013. Redemptions of Uridashi bonds in January were estimated at JPY171bn (USD1.7bn), bigger than in December (JPY123bn). Thus, we estimate there was JPY57bn (USD0.6bn) of net JPY buying via the Uridashi market, for the first time in two months.”
“In G10 currencies, USD-denominated issuance (JPY24bn) was bigger than AUD- denominated issuance (JPY18bn) for the first time in two months. USD‟s share in issuance recovered to 16% in 2013 from 5% in 2012, while the share of AUD declined to 25% from 32%.”
“The shift into USD from AUD continued in January. NZD-denominated issuance also recovered in January to JPY11bn, the biggest amount in three months. As a result of the shift in new issuance from AUD into USD and NZD, net flows (issuance redemptions) of AUD were -JPY47bn (-USD0.5bn).”
Key Quotes
“Issuance was the smallest since April 2013. Redemptions of Uridashi bonds in January were estimated at JPY171bn (USD1.7bn), bigger than in December (JPY123bn). Thus, we estimate there was JPY57bn (USD0.6bn) of net JPY buying via the Uridashi market, for the first time in two months.”
“In G10 currencies, USD-denominated issuance (JPY24bn) was bigger than AUD- denominated issuance (JPY18bn) for the first time in two months. USD‟s share in issuance recovered to 16% in 2013 from 5% in 2012, while the share of AUD declined to 25% from 32%.”
“The shift into USD from AUD continued in January. NZD-denominated issuance also recovered in January to JPY11bn, the biggest amount in three months. As a result of the shift in new issuance from AUD into USD and NZD, net flows (issuance redemptions) of AUD were -JPY47bn (-USD0.5bn).”