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Troubling new low develops as this crucial market accelerates to the downside.

Eurodollar University

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The Effect of Dollar Swap Costs on JGB Yields

Dollar costs and dollar funding costs swap costs repo collateral, all those kinds of things play an important role in setting JGB yields. We also have to factor when we're talking about JGBs, perceptions of interest rates around the rest of the world because that's going to be important consideration too. You have to perceive what interest rates could be today versus tomorrow along with dollar costs. Those are key components to understanding what JGB market is actually telling us.

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