dChan - Q Origins Project Archive

Japan 10-year bond yield tops BOJ policy ceiling-Meeting Begins today, rising to 0.51%

Board to debate market distortions at Tuesday-Wednesday meeting. The central bank will also release its quarterly outlook report on Wednesday.

Japan's 10-year government bond yield rose above the Bank of Japan's policy ceiling on Monday into Tuesday, despite the bank's announcement it would conduct bond buying operations, which include offers to buy unlimited amounts of shorter-term notes. The 10-year JGB yield rose 1 basis point to 0.51%, topping the 0.5% ceiling of the BOJ's policy band. Yields across the curve were under upward pressure ahead of this week's BOJ policy meeting, at which some investors expect a further tweak in the bank's ultraloose interest rate policy. In a surprise move last month, the BOJ widened the band for the 10-year bond yield to 0.5 of a percentage point up and down from its 0% target. Yields at the superlong end fell, with the 30-year JGB yield down 5 basis points to 1.56%, its lowest level since Dec. 27. Yields on 20-year bonds slipped 4 basis points to 1.345%.

https://asia.nikkei.com/Business/Markets/Bonds/Japan-10-year-bond-yield-tops-BOJ-policy-ceiling-rising-to-0.51

https://tradingeconomics.com/japan/government-bond-yield

The Yen has fallen since it's late Oct high of 151.95-see cap#3

From January 13th and took place today-the 'dip' in cap#2

Addition to the Auction Schedule of Outright Purchases of Japanese Government Bonds

The Bank of Japan will conduct additional outright purchases of Japanese government bonds (JGBs) on January 16, 2023. The details including the purchase amounts will be decided based on market conditions and notified when conducting the operations. The Bank will make nimble responses by conducting additional outright purchases of JGBs, taking account of market conditions

https://www.boj.or.jp/en/mopo/mpmdeci/mpr_2023/mpr230113a.pdf

BoJ/Yen/Japanese Debt information and links

>>18044771 BOJ sets monthly record for bond purchases in December ($130B 17T yen)

>>18069773 pb Bank of Japan to (has already begun to-FIFY) Kamikaze the Bond Market (No one else comes close to Japan with GDP vs Debt ratio-they are in a 'class' by themselves)

>>17990047 BOJ Tweaks Could Be First Step Toward Exit, Takatoshi Ito Says

>>18027219 Global Bonds Extend Losses Prompting BOJ to Boost Purchases (again)

Then the very next day

>>18033133, >>18033267, >>18033421 BOJ Announces More Unscheduled Bond Purchases to Cap Yields

>>17994454 pb Japanese Securities Clearing Corporation issued an Emergency Margin call on December 20th, 21st

>>17983894 BOJ owns over 50% of outstanding JGBs for 1st time-Inverted Yield Curves-27 countries have an inverted yield curve (moar if adjusted for inflation)

>>18001185 Japan’s Inflation Speeds Up, Raising Risk of More BOJ Shocks

>>18027840 pb Gold Warriors : How America Secretly Recovered Yamashita's/Japanese Imperial Family Gold (highly red'd) >>18030620, "this is hands down the most important thing I've read since 'None Dare Call it Conspiracy'…" >>18030717 pb

To go with the above

>>18116157 ALERT - China warns Australia: ‘Be careful’ of Japan

>>18124137 Britain and Japan to sign defense pact

And guaranteed whatever they (BoJ) do with this meeting that began a few hours ago (currently Tuesday morning just after 11:00am JST) it was well communicated on this trip-all this "bilateral talks and agreements" aside as Rahm Emanuel (US-Japan Amb.) was on this trip from start to finish I believe

>>18104103, >>18116365, >>18117093, >>18125855, >>18126527, >>18127328, >>18128249, >>18128249, >>18132790 pb PF: Japanese PM Kishida departed Tokyo for week long trip to Italy, France, UK and U.S.

The three 'Cities of Control'-Rome, London, Washington D.C.' plus Paris and Ottawa to boot

The Japanese Debt problem is now starting to really be noticed (suddenly everyone seems to notice the debt bomb that is Japan-it din't habben overnight and won't 'splode overnight either and even though the BoJ can continue to widen the band of JGB purchases it does (that will be the outcome of the 2 day meeting and probably widening it to 100bp so outgoing BoJ chair Kuroda cap#1 doesn't have to do it at his last meeting that occurs on March 9-10…he gone April 8th)-they already own almost the entire equity market and also own over half of the bond market.

Mktfag has always said (and not the only one either) that the current monetary system ends with the Bank of Japan as it was responsible for propping up our failed system from the 2008 market event via the yen-carry trade…that process (yen/$) was the escalation it needed to get it where it is now and sped up by Fukushima with the "aid package" The other two elements of fiscal escalation were the expansion of the ETF markets (grew like weeds in 2006), the aforementioned Yencarry trade and Crypto-The Satoshi Nakamoto "White Paper' came out in 2008 (that is Alan Greenspan and a few others) and then Bitcoin launched in 2009 and these have now combined with the close to $4 Quadrillion WW in derivatives so you really have a perfect storm here as these four factors were really not enough to tip the system into destruction.

Mkt observation(s): Money Market Managers have about $235B in cash/liquid assets (record high amount-see cap#4) sitting on the sidelines waiting/needing to go to 'work'-and if they don't perform said managers won't have a job..also the blackout period for Corporate Buybacks (earnings blackout) is over by January 27th and that is worth around $4B each day when that returns to the indices. The Algo's (Flow of Funds) don't show a whole lot of programmed selling for the next week (that can change in a HFT milli-second) and you've got a highly data focused day on Weds that includes the FRB's hopelessly and always optimistic Beige Book so any hint of a data point that can be 'spun' in a positive way and I wouldn't want to riding the 'short bus' heavily >>18155467 pb Economic Schedule for Week of January 15, 2023