Bank Of Japan Intervenes, Boosts Bond Buy Ahead Of Fed Decision

Tyler Durden's picture

Having seen 10Y JGB yields spike to 10bps (highest since Feb), The Bank of Japan has decided enough is enough and intervened to bring yields back to the stable 0.00% level they decree as fair. The entire Japanese curve is bull-flattening as the long-end is also rallying after Kuroda and his cronies up their purchases to 200 billion yen, from 190 billion previously. All else equal, this will prompt more demand for US paper from Japanese sources.

10Y Yields had risen to their highest since Kuroda unleashed NIRP.


And so it was time to step in


And the 30Y rallying even more


As Bloomberg's Mark Cranfield noted, The Bank of Japan is back in the JGB market. Yields sliding across the longer end of the bond curve as the BOJ buys super longs. If the Fed does a dovish hike later today, that could be the end of rising yields for this year.

This move also follows Jeff Gundlach's earlier bond bull case, noting that he's increasing duration and investor fear of bonds seems to be getting overdone.

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knukles's picture

That worked so well last time ....

Talking about working so well, I just can't wait until I'm riding in my new Tesla on Windows XP AutoPilot.

What's a blue screen, mommy?


It worked well in so much as the game continues. I think that is all the powers that be care about at this stage. 

DavidC's picture

A friend of mine has just bought a Tesla (here in the UK). My F***book response to his standing beside it in the photos was two words;

"Oh dear...".

I don't think he was impressed with me!


Uranium Mountain's picture

Buy today and sell tomorrow!   Strengthen that USD even more bitches.

back to basics's picture

One intervention after another intervention after another intervention after another intervention after....

The beat goes on. 

Yen Cross's picture

 Tyler nailed that call, yesterday. { well done}


max2205's picture

We fucked some more savers today

Yen Cross's picture

   Not so much gamma vs delta?  I love this Poo Poo

Kaiser Sousa's picture

and gold is skyrocketing right???



rickowens's picture

what would happen if the fed didn't raise.

is it a possibility? 

wains's picture

Bank of Japan intervenes hell...."The Fed tells the Bank Japan to intervene" should be the title

FuckJanetYellen's picture

Jewess Yellen, Gook Kuroda and Dego Draghi are gonna gangbang all of you naysayers.

SomethingSomethingDarkSide's picture

Who could have predicted that?  [not me]

peterk's picture

FED follows the market.. do it will raise

doing othermwise causes them to loose to much money fighting the market


not only does FED raise, butso to  ECB BOJ , BCA RBA etc.

they will ALL follow the maket  in yeilds up


Credit crunch looms...not enough phsicall cash to support the  digital cash out there that they have printed

so the system  becomes  to unstable.. bank runs happen etc.

This is why they have beenn TRYING to eliminate cash, but they CAN NOT.


if they wanted to elinimate cash uptill now , why havnt they?  They could have done it since the  1980's with bankcard technology.

Simple  fact is  THEY CANT ELIMINATE PHYSICAL MONEY as its rooted in people around the world.

Anyways, BANK RUNS will still occur even without money. With digital money you can move  VASTLY LARGER amounts of money from  an Australian bank to a  Swiss bank.

I actually think Bank runs wil INCREASE with  a pure digital system as MORE people will move larger amounts quicker and  faster than ever before.



I should be working's picture

Why not 200 Quadrillion Yen instead of 200 Billion?

Once you're making up numbers on a computer who the fuck cares?



Yen Cross's picture

   lol. I have some radioactive swamp land to sell.

Yen Cross's picture

 It's time for ' Ballz and know All's"

 I'm short $usd Bitchez

Cutter's picture

Yen to 120 or higher. This is now the endgame for the BOJ. There is now no way out. They will go down this road until they simply can't print anymore. The day they stop, rates will skyrocket and Japan will be bankrupt. It's our future too, if we don't get ourselves in order.

Fisherman Blue's picture

Its our future, too late, no way out.