Japan rates weekly review

Barclays notes:

Yields could drop in the near term if the situation in Greece or China deteriorates, causing the Fed to delay liftoff until 2016 and prompting additional BoJ easing. However, JGB yields should begin to rise over a longer horizon if a capex-driven economic recovery should alter the corporate I/S balance. We continue to recommend paying the USDJPY 4yf1y basis, paying 5yf5y swaps + buying 20y JGBs, and long 10y BEI positions.