Japan Bond Yields Spike – 10-Year Now at 1%
Japanese government bond (JGB) yields soared to 1 percent on
Thursday, their highest level in a year, prompting the Bank of Japan to
hold true to its promise of taking action to stabilize an incredibly
volatile bond market.
Analysts expected the market volatility to last for a while, but added that buying by domestic pension funds and the central bank should help keep a lid on yields.
Benchmark 10-year JGB yields jumped as high as 1.002 percent as debt markets globally sold off on comments from the Federal Reserve chief overnight that fueled worries about an early unwinding of the central bank’s asset-buying program….
JGB Futures plunge to two-year lows…
…
The Bank of Japan’s announcement Thursday of it’s aggressive monetary policy—with roughly 140 trillion yen, or $1.46 trillion, on the line by the end of 2014—is meant to send a signal, Bass told CNBC’s Squawk on the Street. “What [Prime Minister Shinzo] Abe and [new BOJ Gov. Haruhiko] Kuroda have done is formalized the announcement that the new sheriff is in town.”
Just got this very reliable financial intel.Analysts expected the market volatility to last for a while, but added that buying by domestic pension funds and the central bank should help keep a lid on yields.
Benchmark 10-year JGB yields jumped as high as 1.002 percent as debt markets globally sold off on comments from the Federal Reserve chief overnight that fueled worries about an early unwinding of the central bank’s asset-buying program….
- This will not end well for Japan: A mere rise in interest rates to 3% would consume Japan’s entire tax revenue just on interest on its national debt
- Nikkei Plunges 1,143 Points (7.32%); Global Equities Hammered; Start of Reflation Bubble Bust?
Japanese Bond Market Halted At Open As Bond Selling Purge Goes Global
Japanese government bonds (JGB) futures have been halted once again this evening as the market opens down over 1 point. 10Y yields smash 11.5bps higher to 1.00% and 5Y yields add 6bps to 47bps. These are quite simply unprecedented moves in what ‘was’ a safe asset class and impresses yet another VaR shock on the market (as we detailed here). What this means practically is that Japanese banks push further into insolvency land (as we explained here) today’s move wipes out another 1.5% of blended Tier 1 capital off the entire Japanese banking industry. Since the 10Y JGB yield lows of 32.5 bps on April 5, the move is rapidly approaching a full percentage point, or the parallel shift amount that the IMF warned would lead to 10% and 20% MTM losses for regional and major banks respectively. Today’s jump in 10Y yields continues the post-BoJ regime of greater-than-six-sigma moves…something no risk model can withstand for three weeks. Just a good job the BoJ didn’t have anything at all to say about this totally disorderly fiasco yesterday.JGB Futures plunge to two-year lows…
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Japan markets plunge most since March 2011; Nikkei futures halted
Japan’s Topix index slides 7%, as financial companies plunge amid rising bond yields
Japan’s Topix index tumbled
almost 7%, the most since the aftermath of the March 2011 tsunami and
nuclear disaster, as financial companies plunged amid rising bond
yields. The rout triggered a halt in Nikkei 225 stock average futures
trading in Osaka.
Consumer lenders lost 11% to lead declines among the Topix’s 33 industries. Mitsubishi Estate Co., the country’s biggest developer, slid 9.3%. Mitsubishi Motor Corp. dropped 14%, falling a second day after advancing more than 50% in the previous three days. Tokyo Electric Power Co. plunged 13%.
The Topix lost 6.9% to close at 1,188.34 in Tokyo. Even with
Thursday’s decline, Japan’s broadest measure is still up almost 40% for
the year. Japan’s 10-year government bond yields touched 1% on Thursday
for the first time in a year after treasuries slid on speculation the
Federal Reserve will curb stimulus….
Bank of Japan Policy Is Huge, Risky Experiment: Fund Manager - 4 Apr 2013
Japan is wagering its future on a massive experiment by essentially doubling its monetary base, and Kyle Bass of Hayman Capital Management doesn’t see it ending well.The Bank of Japan’s announcement Thursday of it’s aggressive monetary policy—with roughly 140 trillion yen, or $1.46 trillion, on the line by the end of 2014—is meant to send a signal, Bass told CNBC’s Squawk on the Street. “What [Prime Minister Shinzo] Abe and [new BOJ Gov. Haruhiko] Kuroda have done is formalized the announcement that the new sheriff is in town.”
JAPAN: The Beginning of it’s Economic End – Get Ready To Short Japanese Equities And Expect Another Real-Estate Bubble Burst - May 22nd, 2013
Get ready to short Japanese equities and expect another real-estate bubble burst.
Christine Hughes, President and Chief Investment Strategist, discusses details of Japan’s radical monetary policy.
the key part of the video, for ease of viewing:
DOW FUTURES in the crapper!
DOW (MINI)
| Index Close | Cur Future | Change | |
|---|---|---|---|
| 15307.17 | 15148.0 | -172.00 |
| Fair Val Close | Cur Future | Change | |
|---|---|---|---|
| 15284.17 | 15148.0 | -136.17 |
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