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?