Word must be out that interest rates are staying ultra low for the next few years
If rates went up markets would tank
So holding money in a bank account will only make losses as inflation munches at it's value
This is probbly an inter-governmental strategy to force those vast pools of offshore cash to go to work in the markets etc
If they won't get involved in lending then they have to go SOMEWHERE or lose value
If rates went up markets would tank
So holding money in a bank account will only make losses as inflation munches at it's value
This is probbly an inter-governmental strategy to force those vast pools of offshore cash to go to work in the markets etc
If they won't get involved in lending then they have to go SOMEWHERE or lose value
huge volume reversal today with high betas getting wacked hard will see if it follows through ... Also regarding fed minutes some governors essentially saying I see bubbles
Japanese Bond Market Halted At Open As Bond Selling Purge Goes Global
Submitted by Tyler Durden on 05/22/2013 - 20:18
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 means practically is that Japanese banks push further into insolvency land (as we explained here) today's move wipes out another 1.5% of blended Tier 1 capital off the entire Japanese banking industry. Since the 10Y JGB yield lows of 32.5 bps on April 5, the move is rapidly approaching a full percentage point, or the parallel shift amount that the IMF warned would lead to 10% and 20% MTM losses for regional and major banks respectively. 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.
Submitted by Tyler Durden on 05/22/2013 - 20:18
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 means practically is that Japanese banks push further into insolvency land (as we explained here) today's move wipes out another 1.5% of blended Tier 1 capital off the entire Japanese banking industry. Since the 10Y JGB yield lows of 32.5 bps on April 5, the move is rapidly approaching a full percentage point, or the parallel shift amount that the IMF warned would lead to 10% and 20% MTM losses for regional and major banks respectively. 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.
Bglpf (starting tomorrow available on NYSE symbol btg) and ppp
also have hedges in place as far as shorting overall market starting to look like that big volume reversal day a few weeks back when Japan's parabola grad it's 7% haircut day may finally be it
also have hedges in place as far as shorting overall market starting to look like that big volume reversal day a few weeks back when Japan's parabola grad it's 7% haircut day may finally be it
