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Japanese Bond Yields Spike Most In 2 Years On Return From Golden Week Holiday
As Japanese markets re-open after Golden Week, the bond market is extremely active (which in itself is unusual given its total lack of liquidity). Playing catch up to the rest of the world's igniting bond markets, 10Y JGB yields are up over 6bps (and even the 20Y is trading). The last few days have seen yields spike from 28bps to 43bps - a colossal move only seen before in May 2013 (after the initial euphoria of QQE).
Biggest absolute yield swing in bonds since May 2013...
Which drags yields to 2-month highs...
Charts: Bloomberg
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Banzai Bonds now apparently...
My last pay check was $9500 working 12 hours a week online. My sisters friend has been averaging 15k for months now and she works about 20 hours a week. I can't believe how easy it was once I tried it out. This is what I do... www.jobs-review.com
Can someone explain what this all means? Are we at the precipice of yet another imminent collapse which never seems to come?
Or, did I just answer my own question?
The markets of the world are filled with ponzi schemes. As each new central bank (CB) stimulus upholds these ponzi schemes it has less and less influence on markets. As a direct result traders and investors all jump out at the slight appearance of trend change (causing high volatility). Some day in the future it will be a stampede and markets will collapse when the majority lose faith in CB’s. But this will go on longer than most expect and it will be some obscure trigger that sets off the end...
Balance sheet exhaustion. Bond scarcity. Excessive re-hypothecation/leverage.
Whatever questionable utility devaluation and austerity might have had has been exceeded.
Deflation demands higher rates.
They are losing control.
Money doesn't like to eat itself. The utility of the devaluation phase of the currency war is signaling exhaustion.
I repeat: They are losing control.
Abe and Kuroda hurry up you dumb fucks and start buying the shit out of those bonds, otherwise you may lose control. Tell Obama you need help, he needs to tell Bernake to tell the Citadel to keep the Ponzi scheme going.
It's hard to believe anyone would still be trading JGBs, other than the central bank itself.
I am currently trying to purchase some nutritional products from Japan and Thailand. I've noticed that some coutries don't want the hassel with US custom bullshit. Can't say I blame them.
I'd stay away from Japanese nutritional products - glowing in the dark is over-rated.
The CBs appear to be losing control of rates.
Germany, Japan, the US...
The US rate move when taken in context with the strength of the Dollar is especially painful. The FED will have to print and buy bonds to tamp this down or the rate-based derivatives stacks are gonna come unhinged and blow up one or more of the TBTF. At present velocity/trajectory US rates at the long end of the curve will double before the 4th of July...
There is already well over $T in underwater/seriousluy delinquent mortgages just within a the rough hundred miles or so in the PHilly, Newark, NJ, NYC metro/suburban region. The 30yr. over 3.5% will crush the US housing market and take the GSEs and MBS/rate hedge sellers out back for a serious ass whuppin'... The FDIC had better get it's auditors and lock-smiths on deck: the shit is hitting the fan..
IF the US Dollar suddenly moves higher in conjunction with this trajectory interbank lending will freeze up tighter than in 2008-09 and liquidity will totally evaporate.
Fails to deliver are going to reveal who has levered/re-hypothecated beyond mitigation...
I think they blew it badly. The taper is totally fucking botched. The balance sheet is shrinking and leverage is pyramided sky high in the system.
Yellen and Co. have taken the curve at way too high a speed and the whole machine is buckling under the strain. The algos will follow and amplify the momentum and yank the controls right out of their fool hands when they try to level out unless their is a massive thrust of liquidity to over-ride the shock waves...
IMHO, this is a royally awful fuck-up and is going to bury a few big players if it isn't stomped down asap.