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Japanese Stocks Tumble After BoJ Bond-Buying Operation Fails For First Time Since Abenomics
Having rotated their attention to the T-bill market in Japan (after demand for the Bank of Japan's cheap loans disappointed policymakers) in an effort to ensure enough freshly printed money was flushed into Japanese markets, the BoJ now has a major problem. For the first time since QQE began, Bloomberg reports the BoJ failed to buy all the bonds they desired. Whether this is investors unwilling to sell (preferring the safe haven than stocks or eu bonds) or that BoJ has soaked up too much of the market (that dealers now call "dead") is unclear. Japanese stocks - led by banks - are sliding as bond-demand sends 5Y yields (13bps) to 18-month lows.
Umm, Tokyo, we have a problem...
Bank of Japan bought 2.62t yen ($25b) of Japan’s treasury-discount bills from financial companies today, compared with the 3t yen that the BOJ offered to acquire.
This is the first time the central bank failed to meet its purchase target for t-bills since at least April 2013, when Governor Kuroda stepped up quantitative easing
* * *
Markets are not happy - Nikkei is 300 points off today's highs...

led by banks collapsing to 18-month lows
and bond yields are sliding
and the yield curve flattens
* * *
And remember, the Japanese bond market (the largest in the world) is now "dead" according to dealers:
The Bank of Japan’s unprecedented asset purchase program has released a creeping paralysis
that is freezing government bond trading, constricting the yen to the
tightest range on record and braking stock-market activity.
...
“All the markets have been quiet,” said Daisuke Uno, the Tokyo-based chief strategist at Sumitomo Mitsui Banking Corp. “We’ve
already seen the BOJ dominance of JGBs since last year, but recently
participants in currency and stock markets are also decreasing as those
assets have traded in narrow ranges.”
...
“The flows on both the buying side and selling side continue to fall,”
said Takehito Yoshino, the chief fund manager at Mizuho Trust &
Banking Co., a unit of Japan’s third-biggest financial group by market
value. “Falling volatility is a very serious problem for traders and
dealers who are unable to get capital gains.”
* * *
Just a good job Kuroda is so confident on hyperinflation...
And for those hoping for moar QQE - how exactly will they achieve this when they can't get a T-bill "BOJOMO" off at current levels!
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Rock, meet hard place.
How are you doing Rocky....... my Place or yours ?
Pardon the thread jack. But shocked theres nothing about Biden's son riding the white pony out of the navy.
This is good to know.
WSJ:
Biden's Son Hunter Discharged From Navy Reserve After Failing Cocaine Test
I like how the WSJ mentions that he is now “managing partner at an investment company”
"I deeply regret and am embarrassed that my actions led to my administrative discharge," he said. "I respect the Navy's decision. With the love and support of my family, I'm moving forward." TO UKRAINE
Washington Post:
Hunter Biden’s new job at a Ukrainian gas company is a problem for U.S. soft power
I am reading up on proper guillotine construction.
Can't wait for WH press conference. MSM will likely kill it. But if they some how mention it as a whisper when no one else is looking, it will be hilarious to see how they spin the VP's son snorting blow off of DC hookers. Any guesses? I'll go with... they have scientific evidence that cocaine reduces susceptibility to ebola. Hes actually a patriot. Songs will praise his name.
TIME TO PRINT SOME MOAR BONDS!!!
We are unwilling to sell, so the reaction is to LOWER rates. Are some idiots trying to be morons around here?
Cruise ship denied port in Belize as US tries to evacuate Dallas nurse who handled Ebola sample http://wtfrly.com/2014/10/17/cruise-ship-denied-port-belize-us-tries-to-...
Man on flight from Africa to JFK vomits and dies en route. CDC says no Ebola. Passengers say CDC barely looked at the guy.
If you live in NYC, good luck to you.
Always good to have a coke head running an investment firm,after all what could go wrong?
The better question is, what could go right??
my neighbor's ex-wife makes $77 /hour on the computer . She has been unemployed for seven months but last month her payment was $15804 just working on the computer for a few hours. go to the website... www.job-reports.com
Easy fix (but not the one they want): Tax Refunds for all shoppers. This will get the flow going, albeit from the bottom up instead of from top down.
That's a shame.
Correction: That's a sham.
That's actually a scam.
Crash mother fucker!
Jesus H. Christ, what a ponzi, from the North Pole to the South Pole.
"Punish savers, bleed the middle class, reward the banksters and the money-changers."
A thousand or more hangings of the complicit banksters and puppet politicians REQUISITE for sanity.
-1 for using quotation marks of "I have no fucking idea what". Can you tell me what you quoted?
I quoted me.
Stocks crashing based on Central Bank buying for the sake of Banksters is a good thing. Crash, die, crash. Go go Godzilla.
I am cheering on the death of Central Banks, of QE, of "liquidity" based on robbing the public treasury and propping corrupt financiers while punishing the working class.
Questions?
"I quoted me."
:) It doesn't work that way son, you can't quote your thoughts. I'm not knocking what you're sayin, just learn some fucking basic grammar if you want to be taken seriously.
What about the rights of the illiterates?
Harbanger: Go quote yourself.
if my grammer is bad but i point a fucking gun at your head would you then take me seriously? how about a punch to the face? a swift kick in the ass, as you run to your books, fucking book worms, lawyers and cock roaches, (power of the pen, mighter than the fucking gun bull shit). talking to myself "(quotes-haha)fucking loser/poser, thinking his articulations of words makes himself superior, thinking he will charge me with assault, fuck him, just make sure i knock him out so he is fuckling clueless", oh he is already,ha....
I can't take anyone seriously who posts smiley faces in their posts or in their replies to posts... :-)
Red eyes at morning, sailor, take warning!
Punish the monkeys, and let the organ grinders go.
However, I'm a monkey with a guillotine, and my guillotining preference is "grinders."
An American, not US subject.
Yellen to give a speech today about income inequality where she is expected to announce an extention of QE.
How ironic that as the beleaguered Middle Class is finally getting some relief at the pump she's expected to announce "printing full speed ahead" because the market has dropped 1000 points. I suspect oil prices will rise as this new patch of free money finds a home and the hammering of the Middle Class will continue. These people are so full of shit.
A 63-year-old man died during a flight from Nigeria to New York's JFK after vomiting profusely - but it was only a 'cursory' exam by the CDC that confirmed he did not have Ebola.
Read more: http://www.dailymail.co.uk/news/article-2796641/fresh-fears-passenger-flying-nigeria-jfk-dies-seat-vomiting-profusely-body-declared-ebola-free-just-cursory-exam-cdc.html#ixzz3GN7GwZQ6What's the problem? Use those spare Yen to buy the fucking Nikkei.
I don't get it. Who is buying Japanese debt? Are they fucking retarded? Didn't Japan have something crazy like 5% inflation but less than 1% yield on bonds, meaning you're actually paying the government while taking on all of the counterparty risk associated with lending money?
Stupid people be stupid.
The Chinese (and the Koreans more so) are desperate to keep the Japanese Yen high. Using purchasing power parity, the Yen should be priced around 125 Yen to 1 US Dollar. In the short term the pain to the Japanese consumer, who has gotten used to buying Korean and Chinese substitutes for much of what used to be made in Japan, will be great. But in the longer term it would restore the Japanese economy to its historical balance. But then the pain would be transferred to Korea and China.
So, Abenomics can work only if wages and total employment rise fast enough to offset inflation, and if Japanese corporations can bring enough production back to Japan fast enough for this to happen. But, like their American counterparts, Japanese corporations have off-shored much of their capacity to China. And like America, Japan has lost some of the skills that once gave them a qualitative advantage over the rest of the world in many vital industries.
The Chinese and Koreans are not going to let this happen. So, the pain in Japan is great with no end in sight. However, Chinese assertions, that the Ryukyus and Senkakus are historically Chinese territory, has given Abe the wedge he needs to convince a majority of his people that the pain will be worth it.
This is very convincing on paper, but the Japanese economy is TOAST just like the American economy and every other pure fiat economy is TOAST. When the only customer at a lemonade stand is the operator of the lemonade stand AND HE CAN'T KEEP UP, you know the system is profoundly, completely FUCKED even without Fukushima radiation cooking its way up the food chain. JAPAN IS DONE. The best they can hope for is some kind of surrogate relationship with their solvent neighbors, and to do that they had better STFU about sea lanes and oil and gas deposits under a handful of islands, because they will be lucky to get any share at all once production gets underway, which really needs to happen post-haste. It's time to set aside the "SAVING FACE" bullshit and grapple with some very harsh long term realities. THE BUS HAS A NEW DRIVER, AND IT AIN'T YOU. AT LEAST DO WHAT YOU CAN TO AVOID GETTING KICKED OFF THE BUS.
When the only customer at a lemonade stand is the operator of the lemonade stand AND HE CAN'T KEEP UP, you know the system is profoundly, completely FUCKED
Let me guess you never went to Business School or studied economics?
Rather than initiating a pissing contest, I hope you'll demonstrate your superior intellect by explaining in simple idiot-proof terms why you still think Abenomics are 'helping.'
Chill out dude.
The joke wa on the business graduates and the economists, highlighting how well you can explain the situation using an example of a lemonade vendor.
Im on your side bro.
Thanks - It was late LOL
I still don't get it. Sure the Chinese can buy the bonds to prop up the Yen but don't the Chinese then worry that eventually the Yen falls and they are left holding Yen that are now worth 1/2?
I too do not understand who buys bonds of a county's failing currency except the central bank of the country trying to keep it from failing in a failed last ditch effort.
So, all the gains in the Nikkei since Japan began its QE are now gone. Should the same happen to the USA, the S&P500 would drop to about 1500. That would be about a 25% drop from its recent high, and a very respectable "Bear" market.
stop fooling yourself, more like 1200 on SPX
Putin should just go for broke and dump all of his dollars to stregthen the Ruble and just see what happens.
He'd be much better off buying front month gold futures and demanding delivery. Would change everything... Global gold default and real assets go exponential.
No, Putin will pick it up and load it with its own hands into his submarine parked in the Hudson river.
Can someone here who is smarter than me compare Russias GDP to Japans GDP?
With or without services provided by Geishas, seasonally adjusted for Seppukus?
I should start charging money for this kind of stuff, but here's everything you are likely to want to know:
http://ieconomics.com/gdp-russia-japan
Russia's GDP is about 1/3 the size of Japan.
People can tell you anything, and usually do.
ps "white pony" is the name of my dick
Is that the pet name your girl gave it? I would keep that info to myself.
I have to second. "Pony" actually is kind of fucked up. No "white stallion"? She's calling you small bro.
suckers
More often than not , whenever, i pass by a Mc Vomits or a Bugger Kings or a KF Seizures , i come over with Ebola like symptoms. Moreover those 'Fruity Bat Bars' sold in that small village in Guinea are far more appealing than the toxic gmo's on sale in the aforementioned establishments.
It used to be that ' Saving Face ' was No.1 on the Must Do list for Japanese Elites but with Abe & The Laughable Gnomes sweeping ALL THE TOXIC SHIT under the carpet , mimicking the Western Elites , saving face has now moved to No.23 with lie ,steal and suck bankster dick filling the new top 3 positions.
Last but not least Hunter best be careful that one of those whitish lines is not polonium on his next visit to the New Republika of Ukrania. Mind you his Dadda Joe Blow is system immune to any chemical as he is just One Crazeeeeeee MotherFucka.
I told this before, but one more time.
The way I kicked a Dr. Pepper habit and any desire to visit a McD's, BK, etc. was from their ever increasing shitty service and "food" quality.
No ice. Flat soda. Cold fries. Incomplete orders. Rudeness. Improperly made burgers. Dirty tables. Warm coffee. Long lines. Way too much ice. Smaller portions for same price. Napkin dispensers always empty. Filthy bathrooms. Unable to take an order...
Adios. Started using the local-guy joints for burgers and fries; burger and fries that taste like burger and fries.
An American, not US subject.
Note: My wife came home one day with the kids after stopping at McD's on the way home. I took a few of the McD fries and set them on a small covered plate. Went out and got some local-guy fries and also put a few out on a small covered plate. The next morning I asked here to eat a couple of fries from each plate. Had her eat a few of each after reheating them in the microwave.
She doesn't stop at McD's anymore for anything. She never let me try it with a fish sandwich, which I was looking forward to.
Black swan alert.
An American, not US subject.
"Caution: Objects Are Falling Faster Then They Appear."
Waiting for Black Swans, we are getting Seagulls shitting all over us.
have you Guys seen the market this morning ?? to the moon baby
Yep, the Fed to the rescue once again. They are so afraid of the whole damn system crashing down that they won't even let the markets even get to a simple 10% correction. The fact they can't even allow a correction should be a key sign of how serious things really are and how close we are to the wheels coming off of the whole BS financial markets.
Long Food, Lead, Gold and a silver.......
Humpty Dumpty sat on a wall,
Humpty Dumpty had a great fall.
All the king's horses and all the king's men
Couldn't put Humpty together again
Lets dance!
https://www.youtube.com/watch?v=RjIMqfWDPC4
From NY TIMES< the AIG case vs FED..ZH needs this like ebola needs Obumuluma.:
"Mr. Geithner in his testimony also played down the importance of the Doomsday Book, saying that he had consulted it infrequently during the crisis because the Fed was quickly forced to take measures beyond anything it had done before.
“We were operating really outside the boundaries of established precedent,” he said."
damn it Tylers wake up.
"Mr. Geithner in his testimony
Fed was quickly forced to take measures beyond anything it had done before.
“We were operating really outside the boundaries of established precedent,” he said.
LOL
Translation
They did not know what they were doing and still don't now!
FED's Doomsday Book only states 1 line:
"When the time comes, cause a worldwide panic and GET THE FUCK OUT OF THE DODGE!"
IMF SDRs to replace the US dollar as current debts cannot be paid back.
It's why Bernanke and his son are borrowing hundreds of thousands because they know it will be paid back in worthless dollars.
Humpty Dumpty sat on a wall,
Humpty Dumpty had a great fall.
All the FED's FERN's and all the FED's men
Couldn't put Humpty together again
Fixed it
Japan implodes first, then the US some time later.
Yellen, Bullard, Williams, Dudley, Fisher and Evans, is seeing the future of the US with Japan. The grand Fed printing experiment.