Japan Quietly Changes Bond Market Rules To Avoid Its Own Catastrophic Silicon Valley Bank Moment

Something remarkable happened a month ago, when Japan's bond market suffered cardiac arrest and when yields on the long-end of the curve shot up to record highs after the BOJ raised rates and politicians proposed tax cuts.

That was when eight long-dated Japanese government bonds issued during the near-zero interest rates era collapsed to well below half of face value, forcing some regional banks to post billions in unrealized losses on securities held to maturity and available for sale.