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Japan Bond Market Halted For Second Day In A Row

Tyler Durden's picture




 

Following Friday's epic collapse, snap-back, and circuit-breaker halt in JGB Futures, it appears that investors cannot get enough of Japanese bonds today. From the JPY144.02 close, JGB Futures traded up at the open, oscillated and then gapped higher (on heavy volume) to JPY145.25 before the TSE halted trading once again (on a volatility-based circuit-breaker limit) due to 'rapid price fluctuations. The quadrillion JPY cash JGB market appears very illiquid as we scan the benchmark issues with the 30Y yield higher by 4bps, the 20Y lower by 14bps, and the 10Y lower by 3bps as it appears the futures are the weapon of choice. Since the halt ended, JGB Futures have slipped back notably. It seems pretty evident when and where the BoJ monetization took place but desk chatter was that it was poorly run.

 

 

but in contrast to Friday's epic fail this brief surge in price appears nothing...

 

This should give some more context for just how broken these markets are. A 5bps drop in a 50bps 10Y yield (the BoJ monetization?) followed by a 7bps rip higher!! Interesting that JPY was sold hard during the break in Cash bond trading...

So absent the BoJ's efforts today, the JGB market would have been significantly uglier.

 

Charts: Bloomberg

 

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Mon, 04/08/2013 - 00:26 | 3420806 bluskyes
bluskyes's picture

These charts look like someone trying to get a standard vehicle to start moving in overdrive, and they keep stalling.

Mon, 04/08/2013 - 03:07 | 3420964 Scarlett
Scarlett's picture

Japanese discussing the bitchslap on their faces:  http://www.reddit.com/r/japan/comments/1bo2pc/boj_to_pump_14_trillion_in...

 

 

Also:  Gansgters wearing black robers steal 10,000

 

http://news.nationalpost.com/2013/04/02/man-has-undeclared-10000-seized-...

 

 

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Man has undeclared $10,000 seized at border after exchange rate pushes him over limit to take from country
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Republish Reprint

Adrian Humphreys | 13/04/02 8:08 PM ET
More from Adrian Humphreys | @AD_Humphreys


National Post filesToronto’s Pearson International Airport, where Robert Docherty of Maple Ridge, B.C. last saw his $10,000.

Robert Docherty of Maple Ridge, B.C., knew any amount over $10,000 must be declared at the border when taking it out of Canada, and he purposely counted and calculated the exchange rate so the $9,880 U.S. and $335 Canadian he was packing were within that limit.

By the time he was boarding his flight to Costa Rica at Toronto’s Pearson International Airport two days later, however, the value of the U.S. dollar had risen slightly, pushing his tally over the $10,000 mark.

After a currency detector dog uncovered the cash and Canada Border Services Agents checked the Bank of Canada exchange rate that day in 2010, all of it was seized as suspected proceeds of crime.

Mr. Docherty has now lost his bid to get any of the money back.

 

Mon, 04/08/2013 - 04:16 | 3421029 Boris Alatovkrap
Boris Alatovkrap's picture

Kapital Kontrols in Kanada. End is near!

Mon, 04/08/2013 - 00:37 | 3420808 mjorden
mjorden's picture

Broken? well you know what they say ... 

YOU DIDN'T BUILD THAT!

Mon, 04/08/2013 - 02:12 | 3420827 Supernova Born
Supernova Born's picture

error

Mon, 04/08/2013 - 00:28 | 3420810 nicoacademia
nicoacademia's picture

halt reverse halt reverse halt reverse. scalp till you drop!

Mon, 04/08/2013 - 01:47 | 3420898 TheLooza
TheLooza's picture

Honestly, what is a quelude?

Mon, 04/08/2013 - 01:54 | 3420909 GoldForCash
GoldForCash's picture

A 1960's super sleeping pill. Honest man I was there....I think ??

Mon, 04/08/2013 - 02:02 | 3420913 Transformer
Transformer's picture

Uhhh, I sort of remember them being used for something else.

Mon, 04/08/2013 - 05:20 | 3421075 Bearwagon
Bearwagon's picture

By the way, that's "quaalude", used to be known as "ludes".

Mon, 04/08/2013 - 06:11 | 3421099 smlbizman
smlbizman's picture

as in...you got any ludes man?.....

Mon, 04/08/2013 - 08:28 | 3421270 Disenchanted
Disenchanted's picture

Lemmon 714s...In the late 70s the Catholic Italian girls on the east side of Cleveland loved em, with a chaser of Southern Comfort. Assuaged that sexual guilt I guess. So I'm told ;)

Let the good times roll...

Mon, 04/08/2013 - 10:02 | 3421652 toady
toady's picture

I had a black T-shirt that had a picture of a lemmon lude on it. I wore it till it was falling off of me, all thru high school.

Yeah, I was that guy...

Mon, 04/08/2013 - 00:29 | 3420811 Theta_Burn
Theta_Burn's picture

Imagine being at the helm of that shit....

 

Mon, 04/08/2013 - 00:33 | 3420823 kliguy38
kliguy38's picture

AoooooGAH AoooooGAH.....all hands on deck......man your battle stations......we're in the mother of all shit storms

Mon, 04/08/2013 - 00:59 | 3420846 lewy14
lewy14's picture

desk chatter is that this was poorly handled.

Bullshit.

The vol is intentional. The goal is to spike vol, break everyones models. Freeze the desks "deer in headlight" style so that a) they have a hard time frontrunning the BOJ and b) they won't unload, c) can't hedge as optionality is too expensive.

This is what "irresistable force algo" vs "immovable object algo" looks like. Rather than try to smooth things out, the BOJ is just letting the machines grind metal on metal.

Mon, 04/08/2013 - 00:31 | 3420812 lolmao500
lolmao500's picture

Meh. Rates still at historic lows. Call me when the 10y rate goes above 1%...

Mon, 04/08/2013 - 00:49 | 3420836 RockyRacoon
RockyRacoon's picture

That steamroller is bearing down on them.  I hope those pennies are worth the sweat.

Mon, 04/08/2013 - 02:47 | 3420956 Pareto
Pareto's picture

or negative

Mon, 04/08/2013 - 00:30 | 3420816 kito
kito's picture

Bond....market.....ha ha......jumbo shrimp.....military intelligence......political science......any other good ones????

Mon, 04/08/2013 - 03:13 | 3420974 peter4805
peter4805's picture

Civil.... war

Mon, 04/08/2013 - 00:32 | 3420817 suteibu
suteibu's picture

But it's all good, you see.

From Nikkei.com

TOKYO--A Bank of Japan bond-buying operation Monday went smoothly, analysts said, despite lingering hesitation in the market as participants adjust to the bank's new easing measures.

The central bank said financial firms put in bids to sell Y2.05 trillion in Japanese government bonds maturing in five to 10 years, double the Y1 trillion amount the bank offered to buy.

Financial firms also put in Y633.7 billion in bids to sell JGBs maturing in more than 10 years, over triple the Y200 billion the BOJ said it would buy.

The purchases are the first since the BOJ announced an unexpected deluge of easing last week in its bid to achieve 2% inflation in two years.

The operation also marked the first time the BOJ bought JGBs with more than three years remaining maturity as part of its easing measures, and market participants are focused on how the bank's purchases of longer-term sovereign debt will affect supply and demand.

"The operation today took place with no one really sure what levels are fair value, so it's natural there was a bit of a tail" indicating some hesitation, said RBS Securities chief rates strategist Akito Fukunaga.

The Tokyo Stock Exchange temporarily halted trading of lead 10-year JGB futures after the contract climbed to its daily price limit after the result was stronger than some market expectations, analysts said. The 10-year JGB yield also fell as low as 0.440% compared with 0.490% at the midday close.

Mon, 04/08/2013 - 09:27 | 3421509 rubearish10
rubearish10's picture

"put in bids to sell"? What children write this shit? Par for the course....

Mon, 04/08/2013 - 00:32 | 3420819 jimmyjames
jimmyjames's picture

Vesuvian tremors in a major bond market.. who could have thunk it-

Mon, 04/08/2013 - 00:34 | 3420821 ozzz169
ozzz169's picture

Unbelievable, in such a large market to see such swings... who is the buyer other then BoJ

Mon, 04/08/2013 - 03:24 | 3420983 peter4805
peter4805's picture

Benny's got a fuel injected, turbo charged, super, duper pooper high lift cam printer and he means business.

Mon, 04/08/2013 - 00:34 | 3420822 HowardBeale
HowardBeale's picture

How's this going to  hammer the U.S. markets, as we all know that is what is really going to happen  here? The blackest of swans is now aloft in a very dark sky...

Mon, 04/08/2013 - 00:44 | 3420835 fuu
fuu's picture

Apparently it's all good as the S&P sits up half a point.

Mon, 04/08/2013 - 00:43 | 3420831 q99x2
q99x2's picture

Crash landing. Full speed ahead. It reminds me of the bankers trying to tweek things in the first Money as Debt video. No matter what they do they just can't seem to fix it.

Mon, 04/08/2013 - 00:42 | 3420832 LetThemEatRand
LetThemEatRand's picture

Fuck.  You.  Bernanke.

Our tax dollars (indirectly via POMO) are now funding the Japanese disaster.  I can't remember if Bernanthra is the good guy or the bad guy in this one, but Godzilla always goes back in the ocean and hangs out when he's done, so perhaps that's a lesson to us all.

Mon, 04/08/2013 - 02:46 | 3420954 Pareto
Pareto's picture

Would love to see a digital short where Godzilla says "fuck this", comes out of the ocean, hunts down Kuroda, then fucks him in the ass. 

Mon, 04/08/2013 - 00:55 | 3420843 jonjon831983
jonjon831983's picture

Welcome. You can check in, but you can`t check out.

Mon, 04/08/2013 - 01:09 | 3420852 lolmao500
lolmao500's picture

While that sissy Obama is trying to encourage Kim Jong Un to kill South Koreans...

https://twitter.com/W7VOA

NYT: Some of the public language from #ROK gov't suggests Seoul & Washington may not agree on how far any retaliation should go.

NYT quotes unnamed senior U.S. official: "Overreaction by South Korea is a real risk — and we’re working on that problem.”

Basically saying... do whatever North Korea... no big deal... I'll make sure South Korea doesn't hurt you... what a freaking piece of shiat.

Mon, 04/08/2013 - 07:54 | 3421185 matrix2012
matrix2012's picture

It seems like the Obama administration is pushing subtly yet hardly the N.Korean to attack its Southern sibling for its various hidden agendas... and VOA is serving its mandates trumpeting those messages.

Damned the S.Korea to dumb and risk itself by taking part in these dangerous ploys, engaging itself in endless military exercises to provoke the fuse head of the North. Aside from the foreign power intervention and agitation, both Korean sides are guilty for their parts, and both are led by the new, incompetent leaders. I do miss the leadership of the late Kim Dae-Jung.

This drama is just a part of the much bigger power plays within the Asia Theater.

Mon, 04/08/2013 - 10:21 | 3421738 toady
toady's picture

Interesting.

I had assumed this was just another NK extortion attempt, just like in years past. Its been a long winter and I'M sure the north needs wheat or heating oil or something.

The interesting angle this is this time it's the son, not dad, that they are dealing with. It appears the west is trying to set a precedent. They don't want to pay off the extortion. If the west gets by without paying this time they'll try not to pay ever again ...

Mon, 04/08/2013 - 01:13 | 3420864 U4 eee aaa
U4 eee aaa's picture

It sure is a good thing these guys know what they're doing....

Mon, 04/08/2013 - 01:23 | 3420871 imbtween
imbtween's picture

*pulls grenade pin.... hero leaps over fence and lands on grenade saving everybody! And grenade only 1/4th exploded because grenade circuit broke.* Happy news! Hero lives to save another day thanks to US Fed body armor supplied to hero in anticipation of 1/4th grenade explosion.

Mon, 04/08/2013 - 01:43 | 3420893 RafterManFMJ
RafterManFMJ's picture

*pulls grenade pin.... hero leaps over fence and lands on grenade saving everybody! And grenade only 1/4th exploded because grenade circuit broke.* Happy news! Hero lives to save another day thanks to US Fed body armor supplied to hero in anticipation of 1/4th grenade explosion.

^That's so fucking ridiculous I don't even know what you're talking about? Had to give an up arrow! Keep posting stuff like that and I assure you you'll be recruited as lead writer on Indiana Jones V: Indiana Jones and the Cringing, Disinterested Movie-going Public.

Mon, 04/08/2013 - 01:38 | 3420888 ILoveDebt
ILoveDebt's picture

Are you sure this isn't the bitcoin chart for the last few days?

Mon, 04/08/2013 - 01:53 | 3420906 q99x2
q99x2's picture

Last couple of months.

Silver  minus 2 and a half cent. BitCoin at all time high $174 plus $30 since this morning. (+17%). 10:51pm PST

Mon, 04/08/2013 - 02:05 | 3420917 ebworthen
ebworthen's picture

So is it a market or not?

What's with all the "halted trading"?

If you make a decision stick with it and let the markets trade.

How can anyone invest in markets where trading is halted when things happen TPTB don't like?

Mon, 04/08/2013 - 03:54 | 3421007 dark pools of soros
dark pools of soros's picture

well there is a certain market that keeps rolling that most ZH'ers hate.. wow $178 and climbing

Mon, 04/08/2013 - 10:33 | 3421811 toady
toady's picture

It's all a part of TPTB template.

Mon, 04/08/2013 - 02:22 | 3420930 Debugas
Debugas's picture

can not they organize an orderly open-ended buy ? they can not print enough yen on the fly as they go buying ? Loosers

Mon, 04/08/2013 - 02:23 | 3420934 TyrannoSoros Wrecks
TyrannoSoros Wrecks's picture

I don't get it. Why would anyone want to buy Jap Bonds when their debt is unpayable, interest rates are nothing, they are printing funny money, and obongo might decide to kick off a regional war?

Mon, 04/08/2013 - 02:47 | 3420955 Debugas
Debugas's picture

it is called front-running. BOJ promised to buy alot of bonds so you buy in advance to sell to BOJ soon after

Mon, 04/08/2013 - 02:27 | 3420941 Clowns on Acid
Clowns on Acid's picture

Who cares about the JGBs...the Nikkei is up 3% today !  You see ...it works....Krugman was correct.

Now ..lets see how China and South Korea feel about JPY currency implosion..... Lets see what imported oil...(nuclear is gone in Japan) and nat gas is going to cost them...

But then again ...companies merely pass on energy costs to consumers....but it the wealth effect of a higher Nikkei and possibly real estate that will really get the Japanese economy going..

Looks like the 1% ers in Japan will go down fighting....while scorching everyone else.

Mon, 04/08/2013 - 02:44 | 3420953 The Heart
The Heart's picture

WARNING TO ALL ZH CREW:

"A new piece of malware is rocking the Internet society now as it has been found that it is spreading through Skype which basically uses the infected computers to mine for Bitcoins and then make the owner of the malware money. It was discovered by by security firm Kaspersky, the malware is named “Trojan.Win32.Jorik.IRCbot.xkt,” and is spreading at an alarming rate. The malware is thought to have started in Europe, with the worst hit places including Italy, Russia, Poland, Costa Rica, Spain, Germany, and Ukraine. The average clicking rates have hit around 2,000 clicks per hour."

http://www.theregister.co.uk/2013/04/05/bitcoin_mining_malware_appears/

Here is babylon hard at work, tearing down the new digital money system because they stole the idea from the babylonians for the new world oder digital money god system that includes the bio-implant chip to buy and sell all. The major purpose of course is to track, trace, and TAX every single moneterial exchange or transaction.

What's next in the babylonian empire of dust's collection of bones and trafficking false flag events dept?

 

Mon, 04/08/2013 - 03:20 | 3420979 ebworthen
ebworthen's picture

They will do anything to crush anything that competes with their fiat paper and the Ponzi.

Mon, 04/08/2013 - 02:49 | 3420957 q99x2
q99x2's picture

Markets down .0021 in anticipation of nuclear war.

Mon, 04/08/2013 - 06:24 | 3421109 Go Tribe
Go Tribe's picture

Nuke war? Jap QE? Cyprus? They mean nothing today.

It's all about Alcoa, just ask CNBC.

Mon, 04/08/2013 - 03:30 | 3420984 mdtrader
mdtrader's picture

SPX futures at 1552 the same price as a month ago, but the economic situation in Europe and the US has clearly gotten much worse in the last month. There has been a confiscation of capital in the Euro zone and the jobs picture is deteriorating in the US along with several other economic indicators. It is astonishing that the market has not gone lower on this. The idea that you know want to pay more for the SPX than before Friday's very poor payrolls number is ridiculous. They may be able to control the markets, but they can't control earnings! I'm expecting a sea of downgraded expectations as CEO's plug much weaker sterling, yen and euro exchange rates into their numbers and allow for the slowing economies. 

Mon, 04/08/2013 - 04:03 | 3421019 Awakened Sheeple
Awakened Sheeple's picture

Market makers haven't completed their exit yet.

Expect new highs, and CNBS to declare that global economic collapse is bullish.

Mon, 04/08/2013 - 04:48 | 3421052 mdtrader
mdtrader's picture

SPX rally should fail as we run back to the 20 DMA at 1557. Looks likes Kyle Bass's collapse of the Yen might happen sooner rather than later given the way that thing is going.

Mon, 04/08/2013 - 03:55 | 3421008 BigInJapan
BigInJapan's picture

Abe:  "I gotta go take a shit. Where's the autopilot button on this economy thingy?"

 

 

 

Mon, 04/08/2013 - 04:18 | 3421035 q99x2
q99x2's picture

BitCoin 1:16am PST +40 dollars on the day. $184

Mon, 04/08/2013 - 07:50 | 3421095 MFLTucson
MFLTucson's picture

 

Turning the clock back
Back in 2011, Bitcoin had a similar upsurge in popularity in response to a massive price move. In the span of a single year, prices for the digital currency rose from $0.003 to $10, a 300,000% increase that evoked massive interest from performance-following investors. As proponents pointed to the virtues of Bitcoin in comparison to the central-bank-influenced traditional currency markets, rising prices seemed to validate the Bitcoin model. Eventually, Bitcoin prices reached $30.

But in the span of just a few short months, Bitcoin lost 90% of those gains, plunging back to the $2 to $3 level. As Fool contributor Mike Pienciak noted at the time, even lead Bitcoin developer Gavin Andresen cautioned would-be investors about the cybercurrency's volatility:

 

Mon, 04/08/2013 - 05:00 | 3421059 Freaking Heck
Freaking Heck's picture

I'm up...I'm down...I'm up....I'm down. Someone pass me the prozac

Mon, 04/08/2013 - 05:23 | 3421079 Bearwagon
Bearwagon's picture

Prozac won't do you any good. Have a whiff on me ...

http://www.youtube.com/watch?v=-5NGXyRpzTw

Mon, 04/08/2013 - 05:44 | 3421089 MFLTucson
MFLTucson's picture

Explains why the Mob is manipulating Gold and Silver lower again.

Mon, 04/08/2013 - 06:25 | 3421108 Uskatex
Uskatex's picture

OT:  In Northern Italy, ten people assault two armored trucks on the motorway to Switzerland and steal 10 million euros of gold.

http://milano.repubblica.it/cronaca/2013/04/08/news/como_assalto_a_due_portavalori_i_rapinatori_bloccano_l_autostrada-56174825/?ref=HRER1-1

Mon, 04/08/2013 - 07:10 | 3421149 thewayitis
thewayitis's picture

 

  Notice they AWALYS have to Halt when they FUCK with markets? 

 

Mon, 04/08/2013 - 07:50 | 3421180 MFLTucson
MFLTucson's picture

Aint seen nothing yet!  Wait for the Asians and Russia dump out US Treasury's.  Toxix junk will never find a new bid except the Jewish Banking sewerprinted confetti, the same group of trash that created the wolrld calamidy.

Mon, 04/08/2013 - 08:09 | 3421214 Herdee
Herdee's picture

Toss out the Prozac in Canada,go with Sativex.Bayer & GW know a good stone when they discovered it.(27% baby)Sit back,chill out and watch the giant ponzi go down while stoned.Don't forget that your a threat to national security holding up the drive-thru line at Dairy Queen.

Mon, 04/08/2013 - 09:22 | 3421479 buzzsaw99
buzzsaw99's picture

Let's see, the plan was:

1) Induce panic

2) Swoop in and buy distressed bonds.

HARHARHARHARHARHARHAR!!!

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