Japanese Bond Market Halted At Open As Selling Purge Goes Airborne

Japanese government bonds (JGB) futures have been halted once again this evening as the market opens down over 1 point. 10Y yields smash 11.5bps higher to 1.00% and 5Y yields add 6bps to 47bps. These are quite simply unprecedented moves in what ‘was’ a safe asset class and impresses yet another VaR shock on the market (as we detailed here). What this really means is that Japanese banks push further into insolvency land (as we explained here) today’s move wipes another 1.5% of blended Tier 1 capital off the Japanese banking industry. Today’s jump in 10Y yields continues the post-BoJ regime of greater-than-six-sigma moves… something no risk model can withstand for three weeks… Just a good job the BoJ didn’t have anything at all to say about this totally disorderly fiasco yesterday.

JGB Futures plunge to two-year lows…

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Larry Porter
8 years ago

According to Porter Stansberry the US junk bond market is 100% sure to tank too. He says everything is in place to assure that the junk bond and the historically safe corporate bond market, set to lose at least 25%, are going down in flames. The corporate bond world was super safe until, of course, Obama changed all that by folding GM bonds when he confiscated that company illegally. This will be a loss of wealth never before experienced in this country.