Not a single Japanese government bond traded
This just blows my mind: In trading on Tuesday not a single benchmark 10-year Japanese government note was traded on exchange.
The Bank of Japan has bought up so much of the supply that the only market participants left are life insurers and pensions who are mandated to buy and hold.
Earlier today BOJ Governor Kuroda noted to lawmakers Wednesday that the central bank has bought 75% of the government bonds issued in the fiscal year ending this month.
They’re increasingly buying equities as well.
There is no way this should be allowed to happen. The yen should have crumbled long ago and all the bond market buyers should have gone on strike but the music is still playing and as Chuck Prince said, «When the music stops, in terms of liquidity, things will be complicated. But as long as the music is playing, you’ve got to get up and dance. We’re still dancing.»
Instead of a big bank getting taken down when it ends, an entire currency will.