Is It Beginning? Biggest JGB Price Collapse In Over 10 Years Triggers TSE Circuit Breakers

Tyler Durden's picture


Just over 4 hours ago we discussed the stunning collapse in 10Y Japanese bond yields. Since then - things have taken a very dramatic turn for the worse for bonds. 10Y JGB yields have exploded higher. The move from 32bps to 65bps triggered circuit breakers on the Tokyo Stock Exchange in JGB Futures trading as JGB prices plunged by their largest amount since September 2002. We can only imagine there is liquidations galore occurring given the massive outsize moves we are seeing in Japanese bonds, stocks, FX, swaps, and CDS. Did the BoJ just lose control?


Now that is a reversal!!


Biggest price drop in JGB Futures in over 10 years


Is the BoJ losing control?


Charts: Bloomberg

Your rating: None

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Fri, 04/05/2013 - 00:54 | 3411159 DoChenRollingBearing
DoChenRollingBearing's picture

Heilige scheisse!  This makes me wonder if "This is it!"  Naah, because nothing since 2007 has been "it".

Fri, 04/05/2013 - 00:58 | 3411177 Eireann go Brach
Eireann go Brach's picture

Paging Bernanke, Tokyo we have a problem!

Fri, 04/05/2013 - 00:59 | 3411182 redpill
redpill's picture

I fucking told you Venkman, DON'T CROSS THE STREAMS

Fri, 04/05/2013 - 01:23 | 3411184 Cult_of_Reason
Cult_of_Reason's picture

“What Japan is doing is actually quite dangerous because they’re doing it after 25 years of just simply accumulating deficits and not getting the economy going,” Soros said in an interview with CNBC in Hong Kong today. “If the yen starts to fall, which it has done, and people in Japan realize that it’s liable to continue and want to put their money abroad, then the fall may become like an avalanche.”

Massive panic bank runs and capital controls in Japan?

What idiot would want now to keep their JPY-denominated savings in a Japanese bank?


Fri, 04/05/2013 - 01:29 | 3411244 I think I need ...
I think I need to buy a gun's picture

did anything significant happen 80 years ago today? April 5 1933?

Fri, 04/05/2013 - 01:36 | 3411248 Pinto Currency
Pinto Currency's picture

So if they've been trying for so long without success, what is the Fed doing?

Looks like the JGB may have melted through the reactor casing - 'Abe' translated from Japanese is 'Mr. Creosote'.

Fri, 04/05/2013 - 04:24 | 3411396 Supernova Born
Supernova Born's picture

Full retard, bitchez!

Didn't the Bernank tell them you have to buy your own bonds too?!

Amateurs, but they'll catch on.

When the entire first world is printing like maniacs and buying their own bonds we will witness full global fiat retard.

Fri, 04/05/2013 - 05:49 | 3411512 Scarlett
Scarlett's picture

"Please don't worry."

Fri, 04/05/2013 - 06:07 | 3411519 jeff montanye
jeff montanye's picture

"playing with fire" comes to mind.  also "juggling chain saws".  also:

clostridium perfringens is the most common bacterial agent for gas gangrene. despite its potential dangers, c. perfringens is used as the leavening agent in salt rising bread. The baking process is thought to reduce the bacterial contamination, precluding negative effects.

"is thought to".   sweet.



Fri, 04/05/2013 - 08:21 | 3411735 LawsofPhysics
LawsofPhysics's picture

Don't knock the Clostridium.  Many organisms in this genus are nitrogen fixers and very beneficial for the local soil ecology.

Fri, 04/05/2013 - 08:49 | 3411914 tarsubil
tarsubil's picture

Like difficile, tetani, botulinum...

Fri, 04/05/2013 - 12:06 | 3413115 Miffed Microbio...
Miffed Microbiologist's picture

Thanks for that L of P, I used to have a " have you thanked an anaerobe today?" bumper sticker but had to remove it after all the flip offs I got. I think people thought I was a treehugger or something.


Fri, 04/05/2013 - 16:36 | 3414172 WhiteNight123129
WhiteNight123129's picture

A bit of profit taking on my long JGBs, printing always makes yield plunge first, it is the end of printing and /or the using of the base money which brings the yield upwards.

Japan is using massive rhetoric right now, then thye might print which is bullish for bonds first and next the bond market gets into a bear market, the first market which prints gets out of deflation first and gets its bond market in bear market first.


Fri, 04/05/2013 - 15:12 | 3413770 r3phl0x
r3phl0x's picture

When every country has an infinite supply of fiat currency, price is meaningless and real resources must be be allocated by physical force. Long the US military, bitchez.

Sat, 04/06/2013 - 14:44 | 3416615 papaclop
papaclop's picture

Wait until Mrs Watanabe starts buying gold.

Sat, 04/06/2013 - 14:44 | 3416616 papaclop
papaclop's picture

Wait until Mrs Watanabe starts buying gold.

Fri, 04/05/2013 - 05:45 | 3411509 smlbizman
smlbizman's picture

dochen.......this may not be it..but it is another jenga piece removed......which will lead to jenga boom

Fri, 04/05/2013 - 01:35 | 3411258 Cult_of_Reason
Cult_of_Reason's picture

Do you know any public companies that sell wheelbarrows in Japan?

If they lose control of JPY, the demand for wheelbarrows may spike up parabolic in Japan (everyone will need a wheelbarrow full of paper money to buy a loaf of bread).

Fri, 04/05/2013 - 08:29 | 3411778 Muddy1
Muddy1's picture

wheelbarrows????  seriously???

more like rickshaws with a beefed up suspension

Fri, 04/05/2013 - 01:54 | 3411301 Cast Iron Skillet
Cast Iron Skillet's picture

thanks for the tip ... wouldn't have thought of that!

Fri, 04/05/2013 - 02:31 | 3411354 Manthong
Manthong's picture

Be sure to mark your calendar for the big blowout birthday bash celebrating the Fed’s 100th on December 23.

Everybody gets a free promotional Bernanke beer bong with the Feds Logo and the inscription: “You can never have too much liquidity.”

Fri, 04/05/2013 - 02:40 | 3411365 HD
HD's picture

"Everybody gets a free promotional Bernanke beer bong with the Feds Logo and the inscription: “You can never have too much liquidity.”

No green arrows - you were robbed. I enjoyed it.


Fri, 04/05/2013 - 05:28 | 3411498 B2u
B2u's picture

The only minor think to happen on April 5, 1033 was FDR confiscated all the gold.

Fri, 04/05/2013 - 06:18 | 3411526 Fist full of CDOs
Fist full of CDOs's picture

The International Court in The Hague decided that East Greenland belonged to Denmark and rejected Norway's historical claim to the landmass

Fri, 04/05/2013 - 12:40 | 3413267 JeffB
JeffB's picture

"did anything significant happen 80 years ago today? April 5 1933?"


Ooh. Glad history doesn't repeat itself.

Executive Order 6102



Fri, 04/05/2013 - 01:28 | 3411245 I think I need ...
I think I need to buy a gun's picture

did anything significant happen 80 years ago today? April 5 1933?

Fri, 04/05/2013 - 01:46 | 3411275 HowardBeale
HowardBeale's picture

In case nobody has responded: Of course, can you "Just Say No" to Gold? 

Fri, 04/05/2013 - 04:46 | 3411468 Supernova Born
Supernova Born's picture

That's why the Japanese bonds sailed off the edge of the flat fiat Earth. The Japanese were spending some of their "extra" money suppressing gold.

Bernank had his fingers crossed behind his back when he gave the Japanese "helpful advice" on where to invest all their new "money".

Fri, 04/05/2013 - 12:42 | 3413275 JeffB
JeffB's picture

please delete this duplicate.

Fri, 04/05/2013 - 01:32 | 3411247 Pinto Currency
Pinto Currency's picture


Fri, 04/05/2013 - 01:48 | 3411285 CheapBastard
CheapBastard's picture

'Run Forest, run !'

Fri, 04/05/2013 - 03:43 | 3411405 Reven
Reven's picture

And the Keynesians are already hedging their bets.  This shit will never end until it's done.

Fri, 04/05/2013 - 01:52 | 3411296 Wakanda
Wakanda's picture

"We used to roast Stay Puft Marshmallows by the fire at Camp Wakanda." --Ray

Fri, 04/05/2013 - 02:10 | 3411324 Wile-E-Coyote
Wile-E-Coyote's picture

Two missing subs surface in Tokyo Bay, right get ready to detonate we have arrived in Amerika. Who could have known??

Fri, 04/05/2013 - 03:29 | 3411394 Fish Gone Bad
Fish Gone Bad's picture

Tokyo is not my guess, it is somewhere in S Korea.  While all the world is sleeping, there is a very real problem lurking.  After a bit of "pay back" to S. Korea, Japan will be next.

I must be a retard, all I see is the possibility of failure happening all around us, all the time.  My wife thinks I am a broken record.  Since I am patient and thoughtful, I can absolutely wait this out.

Fish Gone Bad

Fri, 04/05/2013 - 03:59 | 3411399 lolmao500
lolmao500's picture

North Koreans hate Japs WAY MORE than Americans... or South Koreans. Hell according to polls, as much as 30% of South Koreans would support NKoreans if they invaded the South. All those ROK troops are not to be trusted at 100%...

Me thinks NKorea will launch at Japan...

Fri, 04/05/2013 - 05:36 | 3411437 Supernova Born
Supernova Born's picture

Los Angeles. Within TV helicopter view of where the ballistic missile launched on the day QE 2 was announced.

The threat the launch represented was a gift the Bernank didn't open, but instead re-gifted to the Japanese.

Fri, 04/05/2013 - 09:49 | 3412357 stewie
stewie's picture

"Me thinks NKorea will launch at Japan..."

and rish B2 loot bags being dropped on their head?  Not a chance...

Fri, 04/05/2013 - 12:00 | 3413091 JimBowie1958
JimBowie1958's picture

NK has long been building up for a war to conquor SK. But all military strength grows from economic strength and NK's economy is comatose at best if  not dead. People are starving while they feed the military their pecious resources and the people live in constant fear and hunger.

So they have a choice: let in capitalism and local democracy and thus reform or throw the dice and see if they can take SK and wait out Americas retaliation. They look at S Vietname as an example of a successful run at this sort of thing.

The capitalism option would involve reducing media and information control. This is problematic for NK as the people have been lied to so much in order to get them to sacrifice for the cause of re-uniting Korea under NK rule. (The only eason SK is not united with NK they say is because  the Devil Americans are holding them by force and using stooges to rule over them.) The people could very likely revolt and over-throw their government if they knew how badly they have been lied to and exploited. The NK government would NEVER risk being overthrown.

So that only leaves option number 2: throw the dice and let fate decide as time is running out and capitalism comes at an unacceptable risk of losing power.

Fri, 04/05/2013 - 08:03 | 3411665 BoNeSxxx
BoNeSxxx's picture

"I must be a retard, all I see is the possibility of failure happening all around us, all the time.  My wife thinks I am a broken record.  Since I am patient and thoughtful, I can absolutely wait this out."

Ditto.  My wife got tired of listening to my jabbering on about the collapse too so I sent her outside to dig holes the size of coffee cans in the woods.  Now she is scattering penny nails over the dirt.  She doesn't ask quesitons and is happy to be outside.

Fri, 04/05/2013 - 08:25 | 3411756 inevitablecollapse
inevitablecollapse's picture

last time i did that, mine tried to run away...

Fri, 04/05/2013 - 04:57 | 3411474 Hayek FA
Hayek FA's picture

 I love this plan! I'm excited to be a part of it! Let's do it!

Fri, 04/05/2013 - 07:15 | 3411582 NoDebt
NoDebt's picture

There is DEFINITELY a slim chance that we'll survive.

Fri, 04/05/2013 - 07:20 | 3411596 Boeing Boy
Boeing Boy's picture

can you explain for a simple Brit?

Fri, 04/05/2013 - 15:21 | 3413826 mkhs
mkhs's picture

Quote from the movie, "Ghost busters."

Fri, 04/05/2013 - 01:02 | 3411191 knukles
knukles's picture

The Bernak'll send Timmah to fix it again

Fri, 04/05/2013 - 01:13 | 3411213 Scro
Scro's picture


Fri, 04/05/2013 - 01:32 | 3411252 Pinto Currency
Pinto Currency's picture


Timmah's a bit sore tonight.
Maybe tomorrow.

The turbo was a bit much.

Fri, 04/05/2013 - 02:17 | 3411331 Silver Bug
Silver Bug's picture

Is the nightmare finally over?! Can I wake up yet?

Fri, 04/05/2013 - 06:09 | 3411521 Go Tribe
Go Tribe's picture

I interesting that this happens at a time when the banks crashed silver to its support levels. Almost like they wanted to get in cheap before hitting the panic button. Nah...

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