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JOMO Arigato Mr. Kuroda

Submitted by Tyler Durden on 05/28/2013 21:49 -0400

The Japanese-bond-stuffed banks of the world (and the collateralizers-of-last-resort) are breathing a sigh of relief at the larger-than-average open-market-operation from the BoJ today (JOMO). From what looked like certain doom and a limit-down open, the JGB market rallied magnificently (along with stocks) out of the gate - almost as if someone 'knew' (which they did here) that the BoJ would come to the rescue today. Remember, as we noted earlier, that unlike the Fed, the BoJ does not have a set size and time schedule (for the full-month in advance aside from broad brush estimates) for its bond-monetization (though we suspect the BoJ will rapidly evolve to a smaller more frequent intervention); which likely accounts for the explosive rise in volatility that is being witnessed on a daily basis in the quadrillion JPY market. Japanese stocks, after an exuberant BTFD opening, have gone one-way - down - and are now testing towards negative on the day. USDJPY tested up over 102.50 in a vain attempt to spark the green equity open but that is fading now too - breaking 102.00. It looks like being another night of correlation trading for Japanese bond and stock investors as Kuroda unleashes a Trillion-JPY-JOMO...

JGBs opened -0.75 (in line with where TSYs were trading, close to limit-down and another Halt), Stocks opened handomsely higher, helped by an 'odd' acceleration lower in JPY up to 102.5 against the USD... Soon after JGBs took off... and the correlation that no equity bull wants to see took hold...

Charts: Bloomberg

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Tue, 05/28/2013 - 21:52 | 3605965 fonzannoon

"It looks like being another night of correlation trading for Japanese bond and stock investors as Kuroda unleashes a Trillion-JPY-JOMO..."

It looks like I have the all clear to go to bed. All it takes is a Trillion JPY to smooth out a market, and apparently throwing a trillion JPY at that market has no consequences. So we got that going for us. Which is nice.

Tue, 05/28/2013 - 21:54 | 3605972 Not Particular

When you've only got a few quadrillion to spare for the whole thing, you need to dole out the trillions. Not more than a trillion per night. Or at least every few hours.

Tue, 05/28/2013 - 22:02 | 3605996 Scritchy

Me love you long time. Especially with Trillion-JPY-JOMO per night.

Tue, 05/28/2013 - 22:06 | 3606007 NotApplicable

So, after they run out of letters to precede the OMO, will they simply drop the M, which is no longer represented?

Tue, 05/28/2013 - 22:26 | 3606081 Duffminster

I am looking at the long term high correlation with the Aussie Dollar and the S&P 500 and seeing the Aus taking a nose dive. Is the Aussie dollar the canary in the coal mine for the S&P 500? After the month in POMO pump ramp are we going to see the market follow the Aussie down?

Tue, 05/28/2013 - 22:26 | 3606082 Duffminster

Tue, 05/28/2013 - 21:54 | 3605967 dow2000

What-fucking -ever. Somebody kill and banker or a politician and then wake me up. Bonus points for Corzine...he represents the two lowest forms of.humanity.

Tue, 05/28/2013 - 22:28 | 3606092 Never One Roach

"Sometime no need fight enemy; just wait for them to suffocate under weight of their own excrement."

Old Chinese Proverb

Tue, 05/28/2013 - 21:54 | 3605970 Dr. Engali

It seems they've drawn the line at 103 usd/yen. The jomo momo express has stalled out.

Tue, 05/28/2013 - 21:56 | 3605976 Mae Kadoodie

Jo momma, Kuroda.

Tue, 05/28/2013 - 22:03 | 3606000 fonzannoon

I just got up in frustration and walked in to my living room and my wife is watching "so you think you can dance". I started explaining bread and circuses to her and walked out halfway through. Only to sit down here again and wait for the Japanese market to do something...anything....and now I am wondering if we me and my wife taking part in bread and circuses.

Tue, 05/28/2013 - 22:06 | 3606006 nmewn

You are...let it go...you can't make sense out of insanity.

Ohmmm ;-)

Tue, 05/28/2013 - 22:11 | 3606025 fonzannoon

serenity now

Tue, 05/28/2013 - 23:44 | 3606290 M2Market

honestly I am kinda suprised that shit came undone this fast, as I expected the BOJ to hold the line at a much higher level much earlier. This tells you that these arrogant Bakayaros really believed their own bullshit, that you can hit 2% inflation and have 0.5% 10 yr yield at the same time without drama. Going forward new JGB issuance will roll into higher rates and let the game of negative compound interest begin...

Tue, 05/28/2013 - 21:58 | 3605980 LetThemEatRand

Hands down one of the worst songs EVER, but strangely appropriate lyrics:

"I'm just a man whose circumstances

Went beyond his control

Beyond my control, we all need control

I need control, we all need control.

***

Domo Arigato, Mr. Roboto"

Tue, 05/28/2013 - 22:32 | 3606096 Buckaroo Banzai

So bad,it's fucking great.

The video is a landmark of 80s culture.

Http://www.youtube.com/watch?v=CzzZkkiJMv8

I AM THE MOD-REN MAN!!!

Tue, 05/28/2013 - 23:43 | 3606287 alphamentalist

the last part of the song will seem so prophetic when japan finance implodes and pulls the rest of us down the drain...

"The time has come at last, (Secret secret, I've got a secret)
To throw away this mask, (Secret secret, I've got a secret)
Now everyone can see, (Secret secret, I've got a secret)
My true identity, I'm Kilroy! Kilroy! Kilroy! Kilroy..."

Tue, 05/28/2013 - 21:58 | 3605985 firstdivision

Q: Why is shit tapered?

A: So It fits through the collateral window.

Tue, 05/28/2013 - 22:08 | 3606013 kahunabear

Kilroy was here

Tue, 05/28/2013 - 22:12 | 3606026 ApollyonDestroy

Given Kuroda's hot off the press statement today I'll assume they don't plan on being able to save the day much longer; but what else is new

Tue, 05/28/2013 - 22:13 | 3606033 realtick

is there any country more immediately doomed than japan?

i think not

Lolitop - Charting The Descent Of The Nikkei Index

http://chartistfriendfrompittsburgh.blogspot.com/2013/05/lolitop-charting-descent-of-nikkei-index_28.html

Tue, 05/28/2013 - 22:20 | 3606061 electricgorilla

Quick....someone find MR T. to promote JOMO

Tue, 05/28/2013 - 22:28 | 3606090 Yen Cross

JPAROMA (Just Pull A Rabbit Out of My Ass) Banksters, are the bait and switch "Masters of the Universe".

Tue, 05/28/2013 - 22:32 | 3606103 fonzannoon

Yen where the hell you been? Can I go to sleep?

Tue, 05/28/2013 - 22:31 | 3606101 jldpc

This shit couldn't happen to a more deserving bunch of people - they were never really punished for their war crimes, and then they spent decades copying us - made us make better products - but what do they offer the world? Really?

Tue, 05/28/2013 - 22:36 | 3606116 ApollyonDestroy

They depleted tuna reserves. Those assholes

Tue, 05/28/2013 - 22:40 | 3606130 Buckaroo Banzai

Nope, they skated off pretty much scot-free.

You see, there was a little matter of 100,000 tons of Chinese gold hidden in the Phillipines, that acted as a mitigating circumstance.

Tue, 05/28/2013 - 22:33 | 3606107 Big Ben

BoJ adopts the 'kamikaze' monetary policy.

Tue, 05/28/2013 - 22:35 | 3606114 chump666

Nikkei looks hopeless.

Tue, 05/28/2013 - 22:42 | 3606138 fonzannoon

It's one or the other Chump and right now JGB's are more important.

Tue, 05/28/2013 - 22:57 | 3606182 chump666

Yeah but you have read my posts about JGBs and a certain country doing the bond vigilante thing beautifully? I wrote a largish post about global bond yields spiking sans China, didn't post through. We are in the early stages of economic war. Yields are not rising on econ recoveries while commodities tank. Anyway...Enjoy this clip:

http://youtu.be/9_peSCECc4I

Tue, 05/28/2013 - 23:01 | 3606205 fonzannoon

I have read everything you wrote chump.

Tue, 05/28/2013 - 23:05 | 3606218 The Shootist

Emm, mmh, good -I'm luvin' it. That'll be 25% more for the burger.

Tue, 05/28/2013 - 22:51 | 3606166 Dr. Engali

Capping the Usd/jpy at 103 killed the rally.

Tue, 05/28/2013 - 22:44 | 3606143 Atomizer

The TV should launch a new sumo weaseling wrestling show that might make this whole financial problem go away.

Harumafuji vs Baruto Day 9 Sumo Haru Basho March 2013

Tue, 05/28/2013 - 23:33 | 3606270 Sutton

Jap antics leaking into 10's and 30's. Major Gap lower. Better be careful

It might finally be happening

Tue, 05/28/2013 - 23:47 | 3606295 The Shootist

I'm looking at that major index over there and it has recovered. For now.

Wed, 05/29/2013 - 00:34 | 3606385 Freedumb

Why won't this god damned thing die. I really got my hopes up after the end of last week.

Wed, 05/29/2013 - 01:24 | 3606438 ChaosEquilibrium

The ENTIRE Island of Japan is selling/dumping US TRYs-----10's and 30's BLOWING OUT......and buying the NIKKEI:):)

....that slope on the 10 yr. rise is NOT normal:) with selling gapping down-yield up to 2.225!!! I've been waiting 5 YEARS for this.....IT IS SHOWTIME....and it WILL BE TELEVISED....for a short while:)

The EARTH is beginning to wobble and the immutable Economic momentum and rational human nature is upon us!:) I believe we are going to see events that go beyond our known experience.....WELCOME to HISTORY!

Wed, 05/29/2013 - 01:12 | 3606423 russwinter