Markets Explode Higher As Bank Of Japan Goes All-In-er; Increases QE To JPY 80 Trillion

Tyler Durden's picture

UPDATE: *NIKKEI 225 EXTENDS ADVANCE TO 5%

NKY is up 1000 points from FOMC

 

 

 

and what do u expect to happen to JGBs when Stocks rip 1000 points... yep they're rallying!

  • Yield on 10-yr govt bond declines 3.5 bps to 0.435%, while 20-yr yield also slides 3.5bps to 1.285%, both lowest since April 2013.
  • 5-yr yield falls 1 bp to 0.110%, level unseen since March 2013
  • Lead 10-yr bond futures climb to record 146.78

 

In a surprise move given all the recent congratulatory bullshit from Abe and Kuroda on breaking the back of Japan's deflation and bring about recovery (forgetting to mention record high misery index, surging bankruptcies and a crushed consumer), the Bank of Japan (by a 5-4 vote) raised its bond-buying program from JPY 70 trillion to 80 trillion... and triple its ETF buying to JPY 3 trillion. This move, on the heels of more confirmation of broader foreign asset purchases in Japan's GPIF sent USDJPY instantly gapping 1 big figure higher to 110.30 and Nikkei futures instantly rose 400 points. S&P futures are also surging. Gold and silver are tanking and TSY bonds are selling off.

  • *BOJ UNEXPECTEDLY TARGETS BIGGER EXPANSION OF MONETARY BASE
  • *BOJ TARGETS 80T YEN ANNUAL EXPANSION IN MONETARY BASE
  • *BOJ SEES RISKS IN CHANGING DEFLATIONARY MINDSET
  • *BOJ AIMS FOR ANNUAL INCREASE OF 80T YEN IN JGB HOLDINGS
  • *BOJ EXPANDS PURCHASES OF ETFS TO 3T YEN
  • *BOJ: ETFS TRACKING JPX-NIKKEI INDEX 400 ELIGIBLE FOR PURCHASE
  • *BOJ: WILL CHECK RISKS, ADJUST POLICY AS APPROPRIATE

BoJ Statement

This was a double whammy though as Japan also announced it was shifting GPIF asset allocations...

From this...

 

To this...

  • GPIF’s current portfolio targets are 60% for Japanese bonds, 12% each for local and overseas stocks, 11% for foreign bonds, 5% for short-term assets
  • GPIF will today boost allocation targets for Japanese and foreign stocks to 25% each, while reducing its domestic debt allocation to 35%

And the result...

  • *YEN DROPS TO 6-YR LOW AT 110.12 PER DOLLAR AFTER BOJ
  • *NIKKEI 225 SURGES MOST SINCE JUNE 2013 AFTER BOJ ADDS TO EASING

Nikkei 225 is up 700 points from this afternoon's 2-week old headline and broken markets!!

 

S&P futures are surging...

 

Gold was pushed lower...

 

Ironically Gold is up in JPY terms...

 

Treasuries are being sold heavily...

 

*  *  *

It seems money does grow on trees...

*  *  *

A gentle reminder - Blackstone's Larry Fink met Shinzo Abe two days ago... (the same Blackstone that warned of carnage if selling ever begins in corporate bond land)... clearly the Japanese panicked!

Welcome to your fundamental-driven markets!! The farce is almost complete. The day after The Fed stops QE, The BoJ raises its bond AND STOCK buying program!!!!

*  *  *

Coming soon...

 

Even though Kuroda said Japan could control hyperinflation through monetray policy...

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Sam Clemons's picture

Japan = Winning the battle of idiocy.

Deathrips's picture

The game is print and spend as fast as possible.

 

Everybody's doing it. Till they cant.

 

 

RIPS

 

 

philipat's picture

This all looks like the end game to me. And in an almost unbelievable development, PayPal have, without warning or explanation, closed the Account which was set up to receive donations in support of the "Yes" campaign for the Swiss Gold referendum

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/10/30_P...

Isn't this all smelling a little like desperation?

Squid-puppets a-go-go's picture

reddit shows its back up and running. In the end i think the suspension (still unexplained) will end up being a boon for the yes campaign

economists_do_it_with_models's picture

Thanks for the laugh, Supernova Born.  LMAO...  +1

Squid-puppets a-go-go's picture

wow - phark me - gold has punctured its triple bottom - trading at $1171

where's the china 'floor'?

SilverRhino's picture

And silver is pulling a 15 bid handle (15.99)

Squid-puppets a-go-go's picture

arent i the douchebag - i bought both Ag and Au yesterday at $17.35 and $1220

still, cold dead hands and all......

LostandFound's picture

i bought at $1207 yesterday, you will be thankful when people are putting there heads in the oven like in Weimar, have faith, you cant beat this market, but you can protect yourself and your family.

new game's picture

ok, ok, so is this the back up the truck moment? i hear that annoying warning beep...

actionjacksonbrownie's picture

Back up the truck? Yes - back it up and dump it, cuz we are off to $1000 an ounce land now, and everyone knows it. I speculated a while back that $1200 was a given, and that $1000 was likely. Now we know $1000 is a lock and only a fool would be buying here.

 

Sell all your gold now (if you still have any) and pick up 25% more for the same $$$ in a few months time - easy!

new game's picture

yes, that is 64 trillion yen question! 1180 held thrist, christ almight tell us if doing gods work(buying gold) is still the eleventh comandment. ah, no, do not hold false gods, jamie does our work...

Pseudonymous's picture

They could simply set up a Bitcoin wallet and receive donations that way. WikiLeaks did this already more than 3 years ago.

cnmcdee's picture

Tom Clancy was killed by the CIA.

Why? The guy writes Patriot books?

However one of his latest books dealt with a bioterrorist attack that occurs inside the Continental US on Black Friday called Operation Dark Winter.  Coincidentally Ebola conditioning has been ongoing for months, and Black Friday is only four weeks away. ISIS can 100% be blaimed on any outbreak - in fact they probably will be the ones to do it.

https://www.youtube.com/watch?v=DSWHS6CKS_4

Medical Martial Law by Christmas with UN Chinese and Russian Troops anyone?

OW My Balls's picture

Pardon me but wouldn't that interfere with the Auburn ~ Alabama game?

Squid-puppets a-go-go's picture

but that being the case... can anyone tell me why gold and silver are tanking?

philipat's picture

No. It makes no sense. QE = Inflation = Good for Gold. The opposite of ending QE3 = no more printing = less inflation risk = bad for Gold. It seems that both ways are bad for Gold.

But, of course, we are not dealing with fundamentals any longer.....

XqWretch's picture

Same thing is happening with bonds, the opposite of what should be happening...

Relentless101's picture

The play is to borrow a few million in yen and then pay it back for a nickle 10 years from now.

Squid-puppets a-go-go's picture

i akshully disagree

end of QE - stock market tanks safe havens needed - good for gold

QE restarts - inflationary, good for gold

philipat's picture

Yes, I completely agree but I was just trying to explain the way the "Markets" generally are "rationalised". In my example, the first point actually happened, the second didn't. In your example, it didn't happen either. So, again, we can conclude that fundamentals don't mean a thing, only the Fed matters. Pathetic isn't it?

new game's picture

pathetic, fucked up, so in my daily life i can assume a red light means go and green is stop. yellow is flip the bird.

point is when rules of life violated chaos ensure, just a fucking mater of time til chaos is the norm.

already seeing it as a gradual creep of misdeeds by average cits in addition to misfits. wtf, do i care anymore either. think about your own attitude.

why t f should i give ashit if the fuckers are fucking us? the crux of societal degradation...

The Most Interesting Frog in the World's picture

No, inflation is good for gold.  The qe has only marginally made it to the real economy.  In hindsight qe overshot government deficit spending and the economies ability to soak it up, thus it ended up in the stock and bond markets and much of it remains in reserve.  

new game's picture

qe went to the vortex, already allocated, never had a chanvce to get to you or i. like coke in the back room. don't even think for a moment you are entitled to free money. you are not special...

Squid-puppets a-go-go's picture

ive had coke in the back room in my past travails

wheres my fkin free shit?   If i joined the free shit army id commence as an officr

new game's picture

been in that room-breaking rocks that flake to nice rails of pleasure. oh the good ole days of not giving a shit...

The Most Interesting Frog in the World's picture

QE does not equal inflation.  Spending the QE equals inflation.

Ghordius's picture

first comes spending in excess of income (tax receipts). which creates debt (sovereign debt, for example USTs). then comes QE, aka monetization, which is the central bank buying up this debt... with inflation (aka newly "printed" dollars). then this inflation (moar dollars) might or might not cause price increases, depending from other factors, too

let's say a small country has one million seashells of currency in the economy being used as money

then you have a war, and this country issues debt for one million seashells in order to fight it

then... the national bank buys up half of this debt... with half a million new seashells

now you have 1.5 million seashells used as currency in the economy. chances are that prices increase. "monetarists" say by 50%... eventually

technically, the inflation happened at the point of buying up the debt, called monetization

for people on the street, "inflation happens" when prices go up as a consequence of all this

bbq on whitehouse lawn's picture

The question is why would you let another country sell you into slavery for seashells?

James_Cole's picture

but that being the case... can anyone tell me why gold and silver are tanking?

yoy demand declines, particularly in etfs (the drivers of the price gains). People on here are still in denial, but until the etfs buy back in this will continue, no matter how much smoke and mirrors from the sell side

Bay of Pigs's picture

PM ETFs are a fraud and garbage. Stacking physical at lower prices as this thing implodes from within is a gift from heaven.

You really are a fuckan wanker Cole. You dont appear to know much of anything.

James_Cole's picture

You really are a fuckan wanker Cole. You dont appear to know much of anything.

Yeah you been practically clairvoyant on the subject of gold / silver lol

Squid-puppets a-go-go's picture

maybe not, but i am a clairvoyant and i can foresee in about 3 years time you James Cole will still be a fuckan wanker

cnmcdee's picture

Gold futures markets are tanking because the naked shorting exceeds Phys by 100:1. Phys is still $1600 / ounce. Don't think so go to your local bank and ask for a 'gold certificate' and how much.  As soon as you get a quote ask how much for physical delivery..

 

They will act all weird because they have to justify the $400 / ounce premium some how. First they will try to discourage you, and tell you there BS certificate represents a real ounce of gold and is safer.  After you INSIST on Phys delivery it will suddenly have a $400/ounce 'delivery charge.' Well because it's hard to get, and they 'don't normally do this' and 'they have to used armored couriers from bank to bank to bank' will be there drivelling excuse. The whole time they will hope they can switch you back to Gold certificates which the print shop apprentice down the road is printing up by the 1000's...

There are two markets - the pretend pretty Electronic Gold markets and the Real Phys.  It's like comparing Margarine to Butter.  One is a engine lubricant, the other is real cow tit good sh*t.  Don't be fooled by imitations.

 

 

Squid-puppets a-go-go's picture

actually here in Australia theres virtually no premium on getting phyz. except for the currency at 88c to the $US

but then Aus is the worlds (3rd?) biggest supplier

new game's picture

please explain why i can click on phyz gold coins american eagles for 1220 right fucking now. so 1220=1600! what a fucking wanker you are. fuck you...fuzzy math krugman style. i will buy a hundred ounces if you can guarantee me 1600/once right now wanker. fuck off...

chindit13's picture

Phyzz is $1600?  Do you also buy bridges?  Florida swampland?  Your house need some aluminum siding?  How about a nice Mac 512K?  I paid $1800 for it in 1985, but I'll ignore thirty years of Fed-induced inflation and sell it to you at my cost, orignal box and all.  I'm just that kind of guy.  For an extra $400 I'll toss in a massive 20MB hard drive.  Heck, you even get one of the original Option Pricing programs, which I wrote in Pascal and still sits on the HD.  That program made me some serious dosh.

Frankly, I'm willing to give you such a deal because you've saved me.  Out of curiosity I was checking prices on 100 oz Good Delivery bars, and I was quoted $1181/oz.  Yes, if it sounds too good to be true, it probably is.  Tungsten no doubt, right?

Perhaps you can help again, though.  I also got quotes on 5000 oz Ag ingots and they were barely over 16/oz.  Everybody here says the REAL phyzz price is 27 or something and its scarce.  I'm thinking maybe those one ounce coins are just really really purty, and I know those 5K oz ingots are butt ugly.  Lots of nicks and depressions that look like smallpox scars. 

Who is your financial advisor?  Sounds like he is serving you well.  Or serving you up.  Some people are made to be customers.

OW My Balls's picture

You know?

 

Who TF really cares?      I'm not advocating a stance either way      For disclosure (vis a vis Ag), I bought some back in July 2010, and it has taken until just now to 'theoretically' go under water on those      Subsequently ~ I never sold any (because I was asleep and just happened to miss out running to the LCS in the exact few milliseconds when it ticked up to $50 then got crushed while all the goons in DC were sitting around in the situation room watching the supposed 'Bin Laden' raid on unplugged laptops)

So the only reason, to me, that they're under water from my perspective is because of the boating accident

Either way, I'd rather have just about ANYTHING physical in the world instead of bank notes (whether paper or digital)      I acknowledge the practicality of holding a few '$'s' in the process, but really, once you have what you believe to be enough of THE BASICS (in terms of food, & emergency supplies), WTF difference does it make if you trade a few crappy dollars for Au or Ag AT ANY PRICE?

So these discussions & admonishments on who got the better of whom in their 'horse trading' endeavors of these instruments is FOS (because the characteristic of that assessment is a MOVING SIDEWALK whereby the value is 'yet to be determined' & thus unquantifiable.

 

Ungaro's picture

Listen, Liebchen and hear me well. The ONLY asset classes you are permitted to invest in are those that can be easily misappropriated, nationalized, stolen. Gold and silver are tough cases because many of you have been known to hide them, you rascals! So just buy more stocks, I promise we will keep pumping them for a considerable period, for the forseeable future. Why mess with anything else? Bonds yield bupkes und commodities are tanking, including the metals. Got that?

bbq on whitehouse lawn's picture

Ever have your accounts frozen? Ever have that money stolen streight out of your account? Its an eye opening experience let me tell you. And no you dont have to do anything wrong or innaproprate to have it happen. YOU dont own whats in your accounts they are not your property.

taraxias's picture

BoJ going full retard. I only see this as desperation, we must be getting close to end. Not a day too soon.

Sam Clemons's picture

Seems like gold is the only antidote against this "system."

I long for the day when people run out of every paper asset into gold.  Maybe it will never happen, but a man can dream.

algol_dog's picture

Greenspan was telegraphing this development. If Gold doesn't start to move now it never will.

Bananamerican's picture

a nice mainline shot from BOJ....how long till defibrillation sets in?