BOJ Injects Unprecedented 7 Trillion Yen In Money Markets As Tokyo Stock Exchange Circuit Breakers Activated

Tyler Durden's picture

Contrary to expectations that the BOJ would injected "only" JPY2 trillion in its emergency operation earlier, Shirikawa came out with a stunner, putting in a whopping 7 trillion yen into Japanese money markets. From Reuters: "The Bank of Japan on Monday
injected a hefty 7 trillion yen ($85 billion) into the money
market in a same-day market operation aimed at soothing market
jitters after a massive earthquake and tsunami hit northeastern
Japan. This was the central bank's first so-called same-day
operation since last May, when the Greek debt crisis roiled the
global financial markets. BOJ Governor Masaaki Shirakawa said on Sunday that the
central bank would provide huge amounts of liquidity to the
banking system on Monday, reinforcing the bank's determination
to keep markets stable in the wake of the disaster." In the meantime, after the Nikkei has plunged over 5%, and the Topix down by 7%, circuit breakers have been activated on the Tokyo Stock Exchange. Elsewhere, the US plunge protection is hard at work, sending futures surging from the overnight drop, after reality threatened to impose itself. Another masterful showing by Sack Frost.

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asdasmos's picture

03/14 - 9:25
9,703.01     -551.42 ( - 5.38%)

03/14 - 9:04
81.41 - 81.44     -1.37

goldfish1's picture

^N225 Nikkei 225 9,660.78 8:20PM EDT Down 593.65 (5.79%)

Crumbles's picture

10pm EDT - Yen at 82.21,  up 0.92, Au now Down from previous 1432 to 1422 after a 3-point gap after electronic opening.  Ag now down 0.35 at $35.90 after reaching 36.45 earlier Sunday.

Look Out Below!  And don't forget to BTFD in PM's

The Alarmist's picture

And yet JPY/USD is still sub 82 ... what does that tell you about the intrinsic value of USD? That is truly spooky.

asdasmos's picture

One interpretation:


If this were not already enough, the Japanese are now selling US Treasuries to repatriate money back to their country for rebuilding purposes (Japanese insurance companies hold large numbers of US Treasuries which they will need to sell and convert to yen to pay claims – that is the reason for the big rally in the yen on Friday and the weakness in the Treasuries).



Michael's picture

I knew it, said it, and people laughed. Unintended consequences will quake the markets worldwide.

If you are going to panic, panic first.

Massive sovereign debt is a threat to national security in situations like massive earthquakes and hurricanes that are inevitable.

KickIce's picture

Always figured China and Japan were involved in a game of chicken with a quick trigger on the sell button.

Threeggg's picture

Is this Real Yen or Plastic Yen ?

NI225 is down  -5.26% right now.

The Count's picture


OK now, if anybody really believes the bobbing heads on CNBC that a devastating earthquake is a good thing, we all deserve to go to hell. I look forward to kicking Blankfeins puny little ass there.


bankonzhongguo's picture

As the Chinese say, "May you live in interesting times."

Crumbles's picture

Complete quote is: May you have an interesting life and come to the attention of the King.

Yes, it is truly a curse.

djrichard's picture

How does the BoJ inject liquidity?  Do they buy assets?  Or do they somehow stimulate more participation at the debt window?

Yen Cross's picture

Via US treasury liquidations.

djrichard's picture

But if they swap US Treasuries for Yen, they're taking Yen out of the market.  Presumably they're injecting those Yen back into the market.  I can't imagine they're using the debt windows - I'm assuming those debt windows have been abused so long, the "customer base" has indigestion.  In which case I'm assuming they're swapping Yen for other assets (possibly even US Treasuries being sold by private holders in Japan - one article talked about the Insurance sector liquidating their holdings - I could imagine BoJ buying those).

AUD's picture

Yes, they buy 'assets' (note inverted comma's). The idea is to 'monetise' the 'assets' of the 'banking' system, so as to keep it 'liquid'.


Lord Welligton's picture


They have to liquidate their Dollar holdings to buy commodities for the rebuild.

They can only buy commodities in Dollars. It is the reserve currency.

Buy dumping Treasuries they can buy commodities cheaper.

The Tsunami may have hit Japan.

But it may no just hit the Dollar.

If Bernanke prints more it makes it worse.

I call this rock and a hard Tsunami.


Threeggg's picture

True story:

Many years ago I hired a Polish Blonde Bombshell accountant for my business. (I know that wasn't to brite but I was young then and the eye candy was prime !)

When I approached her about accounting irregularities ( As the ledger had a -6,000  imbalance on the checking Reconciliation for that month) she said no problem and went into the software (right then and there) and just added $6000 to the checking account (as I watched) and when she hit the enter key she said "ok" "All fixed now".

Her employment was terminated on the spot.

I think that is what all these central banks are doing. Although they are not as good looking as she was  !

dark pools of soros's picture

you are an idiot for not promoting her to investor relations

FunkyMonkeyBoy's picture

Why aren't U.S. citizen's storming wall street to show the powers that be that they still have fight in them? Last time i went down there it was an easy stroll through, no barb wired, walls or anything major to stop it being stormed like the brave souls of the middle east stormed their institutions.

Maybe Americans have become so dumb that they think Wall street is called so because of it's impenetrable walls.

The apathy is truly sickening. The U.S. is going to crumble to nothing overnight and rightly so, the citizen's didn't even put up a fight.

Yen Cross's picture

Hey Funny Monkey! Why don't you storm (Tiananmen Square) Oh wait, was that renamed?

Lowest Common Denominator's picture

The moment folks start missing meals?  It's on like Donkey Kong.  You're confusing the game's first quarter with the final.

LowProfile's picture

Wait until the price of these five things spike:



Cell phone serviz



Those are the five things the gooberment should subsidize immediately if they don't want a revolt...

FunkyMonkeyBoy's picture

Yes, unfortunately that's the truth. Well, i think it's now been rubber-stamped, based on their behavior over the past few years, the US citizen is the most apathetic, docile, mentally challenged, immoralistic being on the planet at this time in history.

Go Team!

I feel sorry for all the hard working, abused, downtrodden, people of the far east that have subsidised the lifestyle of the U.S. citizen.

Pegasus Muse's picture

Don't be raising the price of my Sam Adams.

Them's be fight'n words.

Saxxon's picture

Funkymb, and where do you hail from?  Why don't you go sit on your thumb somewhere.

Crumbles's picture

Boy!  Big muscles = baby brain; guess it's true

Your avatar seems to be straining - trying to remove a stuck thumb ?

Yen Cross's picture

As the Chinese say? They are soo transparent! They just run bull dozers over their dead.

dryam's picture

The Bernank is hiding in his bathroom right now.

the_white_mouse's picture

Silver immediately loves this news!  Take heed of someone on the last silver post though, who accurately warned of the impending quadruple witching...never know what happens when that is in play.

boeing747's picture

Sure Japan is world No.1 inkjet printer exporters, some of printers are in Ben's basement.

SwingForce's picture

O boy, where is Martha Quinn? How come she's not on CNBC??? Or Lenny & Sqiggy, they would fit right in.

trendybull459's picture

We need your help,come to us and make your voting:

tell it to friend,we need to rich every interesting one to make his vote for FED existence

plocequ1's picture

But, But , But But they cant do this. Come on Tyler, Cant you and Deninger team up and produce some kind of supersonic  debt chart that shows Tranny pop up ads ?

buzzsaw99's picture

The whole planet could be dead and the only things those maggots would care about is the damn banks and flipping nikkei.

Yen Cross's picture

I'm on sabbatical. Maggots,and orange sorbet. And a healthy dose of Hawaii 5-o. Book em Danno!

velobabe's picture

no it is going to change, i know it. you still could use a face job.

buzzsaw99's picture

come on sweetie, pucker up and give us a kiss.

Mr. Poon's picture

How does the old saying about "blood in the streets" go?  I think for the first time in quite some time, I am genuinely interested in Japanese stocks.

jesse livermoore's picture

it says buy real estate,    not stocks  ................

apberusdisvet's picture

This coming week is critical for Blythe.  She has to drop silver to 35 before April l.

Everybodys All American's picture

CNBC - can we assume the crash team is on call?

Id fight Gandhi's picture

Shitnbc cut into it's infomercials for it's version of news. Nuclear energy.

Us futures barely down?

alien-IQ's picture

@7:47 pm EST there was a huge volume spike in the /ES of over 10,000 contracts (which is huge at that time) promptly reversed direction for the /ES as it surged (in 1 minute mind you) from 1291.75 to 1300.75 (IN 1 MINUTE!!!)

alright people, nothing to see here, move along.

rubearish10's picture

Really, what if Martians landed? I'm reaching for something, anything that would bring truth to the Shit&Piss 500 and its supporters.

wretch's picture

Imaginary things don't need to correlate with fundamental laws.  They only vacillate between relevant and irrelevant.

Yen Cross's picture

Sweet! Just like Warp Drives and Worm Holes!  The quantum effect?