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Japanese Bonds Flash-Crash As USDJPY Slides And Gold Tops $1370
With all eyes focused on China (which is quiet for now), Japanese bond futures just collapsed over a point on very heavy volume only to be instantly lifted back to a modest loss in what appears to be a flash-crash - rather than a fat-finger (jamming June JGBs down to 2-month low prices). Gold, meanwhile, is continuing its day-session rally and has topped $1370 - it's highest since September 19th. US equities are holding gains for now as JPY is bid (i.e. JPY crosses are tumbling).
JGBs flash-crash...
The ticks make it look like algos and not a giant fat-finger trade (and we note it occurred during BoJ's JOMO time too)...
We wonder if it's related to the force-feeding that the government recently made:
Japan May Make JGB Bids Mandatory for Megabanks, Brokers
Japanese finance ministry plans to make mandatory from April that 20 brokerages and 3 megabanks bid for 3% of JGBs in enhanced liquidity auctions, Nikkei newspaper reports, without saying where it got the information.
Bidding is voluntary at present in the auctions which enables the ministry to offer additional popular issues of outstanding JGBs: Nikkei
Ministry will discuss plan with market participants next week: Nikkei
Plan aims at revitalizing JGB market liquidity and avoiding risk of interest rate spikes with BOJ buying 40-50% of all newly issued long-term bonds: Nikkei
For context...
And then there's this!!
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When will we get a big crash? This is madness.
Off topic:
Another suicide...http://nypost.com/2014/03/12/trader-throws-self-in-front-of-train-in-fin...
DaddyO
"The divorced father of three had rented a house around the corner from his ex-wife"
Just another dude in bad shape. I don't expect any sympathy from anyone on here but this dude is has no connection to the big picture.
I didn't give any sympathy to the others either.
You make your bed and all.
However, when the big crash occured in'29, there was an increase in suicides leading up to the big one.
And then all bets were off...
DaddyO
Yeah I actually got that backwards btw. He has every connection to the big picture. The big picture that there may be no giant crash, the one where we all fall apart one at a time.
I love the Japanese. They're so patient. Bastards.
Quit pimping your blog, you bastage.
DaddyO
I'd rather click on the NSA's fakebook page.
Why not come out and state you have a blog and why don't peeps come check it out? DCRB did, and things are fine.
This is like the third name I have seen pimping a blog.
pods
Shootist -
We got the big crash. It happened. 2005 the never ending up move in real estate topped out. 2007 equities topped. Now we are in a bond/fiat currency bubble.
You want an official crash? You want the Fed to admit their policy was unsound? Gold prices have doubled since '08. UE has stayed high the whole time.
Hyperinflation? Stock market collapse? Bond collapse? Dollar collapse? That's in the works.
The crash happened. You are witnessing the aftermath.
And futures are rallying based on F**g nothing
Yeah, fargin corksucking icehole.
There can't be a crash, it will herald the end of the system and life as we know it. I suspect the Fed will tap straight into the exchanges and just start typing numbers in to keep the game alive. The ramp last night, where on hell can the money be coming from. People do not buy stocks as war drums are sounding.
it's starting to feel like the Fed believes that if it can't save anything else, it can at least keep stocks, TSYs, and MBS from collapsing. it's going to be funny when 'markets' tell it that it can't. someone should start working on the Yellen in the headlights photoshop.
What if these assholes just outright start rigging the exchanges, at this point I wouldn't put it past them. I suppose printing money and giving it to the PD's is the same thing.
“I don’t see Obamacare as something designed to offer healthcare. … I think the question comes down to a bigger one, which is, are we going to create a society where one hundred percent of everything is digitized and under central control?”
“Who is the governance system, and why are they behaving the way they are behaving? What we see is literally a psychopathic effort and intensity—whether it is in the energy area, whether it is in the currency area, whether it is in the food area, whether it is in the healthcare area—to get 100% central control and to use digital means to do it, and the question is why?”
“Well, you have a complete breakdown of internal financial controls in the US government. … You had over $4 trillion of what is called undocumentable adjustments and to this day, [these agencies] have never, as required by law, produced audited financial statements.”
“In my experience, government is not incompetent at all. … Gridlock is a cover story, incompetence is a cover story. There is a plan, you just can’t see what it is.”
(Cathryn Austin Fitts ex HUD chief)
Good conspiracy, man! You received an up-vote.
Those Japs get crazy when they are desperate...kamikaze trades circa 1940's
Off to an interesting start this evening. Perhaps someone else who has a better trading track record can answer your question when the crash comes.
I assume it could happen at any moment in the next five years.
I'll admit it has taken longer than I imagined to totally bust, but really the crash happened and the last five years has been Hocus Pocus policy. Remember history in that the "depression" started with the crash of '29. Back then the MSM and politics wouldn't admit a crash - much like today - and it took a crash a couple years later for people to understand nothing improved post '29. It is likely that way now.
not anytime this year, there is still a huge sea of obamabux bidding under this market and very few sellers. maybe next year after the S&P prints 3000.
check the e-minis, they are going up at a 45 degree angle, this last dip (that ended today; the bottom is in) cleared the way for the short covering rally past 1900 into this months triple witching.
The S&P has not shown a top but every other index has. But the S&P has not historically shown an obvious top before a crash. We are at a wait and see point for the equity markets, but I would rather cash out and go to gold then try to capture another gain in stocks.
Big Crash Is coming...
Pennsylvania Judge Sentenced For 28 Years For Selling Kids to the Prison System
http://govtslaves.info/pennsylvania-judge-sentenced-28-years-selling-kids-prison-system/
I hope that evil prick dies in his fucking cell.
only in america... land of the american dream...
could also have happened in Jaipur in India I guess...
maybe russia started buying gold, at about the time of ukraine sanctions were put up the flag pole, just a hint to the west - at how easy it would be to tank the dollar, asymetric warfare is a bitch.
Those freakin JGB charts need an " Magnifiying Glass" to read the yield changes!
This isn't going to end well for Japan(MoF,BoJ, KAMPO)
In the future no one will have any wealth tied to the net.
Nothing is safe as counterparty risk in a global systemic collapse.
You don't own it if you don't hold it.
I like your username.
Imagine where gold would be if left alone for even a week.
or even JGB's.
"Crashes are normative in markets" folks. Move along...
I do get the sense that silver is being seriously surpressed/manipulated to keep gold from heading to the moon.
Hopefully we get the slingshot effect
$1375 on my charts
Yawn. BTFD!
HYG is barking at the door! Maybe not this time, but it's close to "total colapse"
.
QEen Yellen will keep on printing until the US dollar crashes.
Charles Evans and Willaim Dudley are promoters of more QE and a much weaker US dollar.
Fed to Japan: We are telling you print and stimulate, trust us, we are doing the same thing.
Economic policy dictates that when in a recession/depression the first move policywise for the central banks is to "devalue the currency to increase exports". That's economics 101. Every economist agrees with that.
Which actually never works since in devaluing your domestic currency, you raise the price of inputs. You then lose control of your cost structure. There is no free lunch. Debasing currency through price fixing of rates is neither sustainable or productivity enhancing. Its a subsidy that eventually is usurped by higher input costs.
As the yen drops even higher stock markets in Japan will fail to protect the wealth of those invested within its borders. It is only a matter of time before the yen becomes worthless. Japan is the most indebted developed country in the world and its future prospects are dim and getting worse. If inflation begins to take root it will place upward pressure on Japanese bond yields and raise the cost of government to service its massive debt.
With the BOJ set to absorb half of the government bonds planned for sale this fiscal year, domestic investors have already started venturing overseas for higher yielding assets. If this turns in to a tsunami of money fleeing Japan it will constitute the end of the line for those holding both JGBs and the yen. More on this subject below,
http://brucewilds.blogspot.com/2013/08/japans-economy-going-forward.html
as long as Yen is accepted by the intl community the reports of its demise are sadly mistaken
China Macro news in 10 minutes. Aud could get smacked down.
http://i.imgur.com/gkGrNWb.png
Talk about a miss. Markets don't seem to care all that much though right now.
Hide the gold. Things are getting interesting.
Can the usd/jpy just roll over and fucking croak already! It's like a fucking wounded dog on the interstate for goodness sakes!
That damn trade has a date with 102.00 so lets just get it over with and call it even.
things are going to get uglier when the 3% increase in consumption tax kicks in courtesy of Shinzo Abe and the party who created the debt problem in the first place. FYI 8% doesn't come close to balancing things.