Government officials say that they will announce the measures tomorrow

Adding that they will announce more comprehensive, follow-up measures to stabilise markets later as well.

The topic of dollar shortages is something that has crept up over the past week or so. In that lieu, a good gauge of that is to look at the yen-dollar 3-month basis swap:


The spread widened to over 140 bps to start the week but so far central banks are calming things down by offering swap lines to try and accommodate the dollar demand in the market. That has helped somewhat as the spread now tightens to just 80 bps.

It will be worth keeping an eye on this in the coming days/weeks to see how funding and liquidity strains evolve amid central bank action to stabilise the market.