"What Hath Kuroda Wrought?"
We have been warning about the circular and adverse impact of soaring JGB yields since the day Kuorda announced the BOJ's new shock and awe "double the monetary base or bust" policy ("Is It Beginning? Biggest JGB Price Collapse In Over 10 Years Triggers TSE Circuit Breakers" ,"Japanese Finance Ministry Warns Surge In JGB Volatility May Lead To A Sharp Bond Selloff", "Toyota Pulls Bond Deal Due To Soaring Yields: The Japanese "VaR Shock" Feedback Loop Is Back", and "Are Japanese Banks On The Verge Of Insolvency?"). Now the bond king himself joins the warning chorus fray (but not before the BOJ itself opined over the weekend on the schizophrenia of its own actions).
Gross: What hath Kuroda wrought? JGB yields a bigger influence on Treasuries than tapering potential.
— PIMCO (@PIMCO) May 28, 2013
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