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Is The Bank Of Japan Losing Control? JGB Yields Surge Most Since 2003
UPDATE: You know it's getting bad when Abe and Kuroda double-team the confidence-inspiring headlines.
- *KURODA: BOJ'S BOND PURCHASES HAVEN'T FACED PROBLEMS
- *KURODA: DON'T THINK JGB LIQUIDITY HAS PARTICULARLY FALLEN
- *KURODA: BOJ EASING ISN'T FOR FINANCING GOVERNMENT DEBT
- *ABE: MONETARY EASING METHODS ARE UP TO BANK OF JAPAN
Japanese government bond yields continue to surge. The last 7 days have seen yields on long-dated JGBs soar at the fastest pace since 2003 - accelerating after the most recent (weakest bid-to-cover in 19 months) bond auction. Following the 18th month in a row of negative YoY real cash earnings (1 short of the record 19 months in a row from 2008/9), Japanese bond yields are surging to their highest since early December.
18th month in a row of negative YoY real cash earnings...
Sparked an acceleration in the JGB yield surge... post QECB
The biggest 7-day surge since 2003... (click image for huge legible version)
Is The BoJ losing control?
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Finally!?
Nope. Not a chance. This turd has time yet to swirl...
It's a trick to squeeze some stupid speculators. It's probably happening on 0% volume too since that chart or any reference to volume is suspiciously absent..
BOJ calls it the reverse Kamikaze.
ZH calls it a revenue generating post from their Goldman Sach ad sponsor. :)
Yields doubled. This is huge. If anyone still traded JGBs, that is...
serious question: if Japan is buying 100% of its own bond issuance , how do the yeilds rise? is it from private entities who purchased in the past prior to abenomics who are dumping theirs before maturity?
Aren't they buying 110% of new issuance? The yields must be changing on a shrinking secondary market. What doesn't make sense is how any of this is happening without any reported volume. You'd have to be getting a little nervous at Japan Post Bank if you held JPY178.9TN of that toilet paper, wouldn't you?
However, if they do find a buyer (BoJ) its probably going to drive US, UK and German bonds/stock markets up; anything they can liquidate that shit for will look like a flight to safety for another few months/years.
if they want inflation buy 80 percent- a central planners dream-inflation. inflate it to zero value-mission accomplished. society decimated, no nuke needed...
I need moar fiat power Scotty. She's breaking up, she's breaki.............
A central bank losing control? How can this be?
.393% for ten year "money". Lol..... this is our future bitchez!
I'm just glad the market recovered off of the recent even lower yields. We can now be confident the market is accurately pricing in the risks.
The show this year is so confusing and the I dont understand why the sheeple cant see whats up that this is not normal and it appears on minute that the shtf then next records will be set so wonder what tomorrow brings?
"They" told us lower oil prices were good. Now "they" tell us higher oil prices are good. WTF! I keep saying It's all Bullshit!!!
correction, lacking proper adjective "it's all fucking bullshit"...
I talked with a woman yesterday who was genuinely confused when she went to fill up her car at the gas station (I guess someone else usually fills the car). She expected the cost to be twice what it was, and so she kept topping off the tank until it spilled over. She had zero clue about what was going on with gas prices, oil prices, or any other prices for that matter. There are some people who are genuinely clueless about the reality of the economy around them. In her case, she has a husband who must make some serious money, because she is not hurting. This is the level of ignorance among many in the population. They truly don't see it.
For someone that stupid the following explanation would probably make more sense:
More likely she only makes the minimum payments on her credit cards.
I have information that will blow the presidency of Argentina WIDE OPEN!
You see, 5 years ago.....
Hold on.
There's someone at the door. I'll be right back.......................
LOL
Dead canarys never sing.
I look for the Japanese market to completely crash first. They have a head start on all the insane money printing. Then, not far behind is Europe. You can already large cracks in their system (Swiss, Greece and QE all in one month). For a very short time foreign investors will be investing dollar assets and our markets. Soon they will realize that these aren't safe either and the US system will go too.
Listen to the warnings. We are getting closer! It could be this year or in five, but it seems things are starting to accelerate faster and faster. I recommend buying silver. It's such a bargain at today's prices. It has been money for thousands of years and will be money long after these paper currencies are dead and forgotten.
One way to get your friends and family stacking silver is by giving them a candle with a silver coin prize: (www.etsy.com/shop/ScentSavers). They will be curious what their coin is worth and discover the amazing value of silver. For instance, one silver dime is worth 12 times face value (in melt value alone)
Yeah, the time that elapses between each successive "crisises" is getting get less and less.
While the frequency of "crisises" is increasing.
If there is a future the textbooks will show that what we're going through now is the precursor to the collapse.
We are already 6 years into the collapse.
Just find and ask one of the 65 million who no longer work, yet are not considered unemployed. For them the poop has already run through the fan.
The collapse (liquidity crunch) is well under way. It is a process, the nationalization of the banks is just a later stage.
Pretty sure it's closer to 90 million working age adults.
Sorry Kevin...apparently no one likes your candles
it is trending up from low 15's...
hi ho hi ho
Those Weimar Marks and Zim Dollars were great for starting fires to keep warm and wiping your ass respectively.
What good will be the Fed's digital dollars? Will we still be able to buy digital accessories and digital clothes for our kid's digital games?
I know - how can you wipe your nether-region's 1's and 2's with 0's and 1's ?? IT DOESNT ADD UP I TELLZYA!
less nirpy than usual - lulz
If Japan has held this shit together for 20 years, that says that the US has a LONG way to go before it blows up.
That should be true, except for the fact that US is not Japan...
That much is true. But does that mean the US has more time or less time?
Japan is a historical anomaly. Most countries hit hyperinflation looooooooong before they get to where Japan's public debt to tax revenue ratio is.
For the twats who downvoted me:
http://www.zerohedge.com/news/2013-02-11/sovereign-defaults-past-and-pre...
less time.
it is a cultural thing- the Japanese put up with situations most of us wouldn't stand for. i'm not saying that is right or wrong, but that's the way it is.
It took em about 20yrs to blow through all that trade surplus money. Me thinks the US will abruptly loose "reserve currency" status overnight and that will be that.
The logic used in your statement is flawed.
Japan was able to extend for 20 yrs because the US was there to backstop them. The US has no backstop.
Also, beware of any chart that draws conclusions from data pre-2008. TARP, Stimulus, QE1-3 changed the rules in ways never known before.
We are in compleatly uncharted waters.
no backstop-in fact everybody else would like to ussa topple flat on our face-face plant with boot to back of head with a grind. see, they all hate us for our millitary and can't do much til they can and then they will, just the way humans are. i know cause i've seen the movie...ha.
Everyone is in the hunt for vol, this beckons back to 2003 when the JGB auction failed
SOMEONE BUY THE GOD DAMN FUCKING DIP! YELLEN, WE'RE LOOKING AT YOU!
Losing, losing? You have to have control before you lose it. And no, being under the thumb doesn't count.
Way to go to show that debts matter for your fiat currencies.
"The higher the yields on 10-, 20- and 30-year Treasuries, the better the economic outlook."
Investopedia
Nothing of matter here, move along...
How do you wipe your @$$ with digital dollars?
With your "digits"
"DON'T THINK JGB LIQUIDITY HAS PARTICULARLY FALLEN"
Looking at the length of the straight lines in the JGB chart leads me to believe that "particularly" does not mean what they think it means.
At some point the only option remaining will be the sale of US treasurys.