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Japanese Bond Implied Volatility Spikes To 10Y High; Stocks Drop First Day In Last 8
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
zerohedge.com / By Tyler Durden / April 12, 2013, 00:30 -0400
t’s been a long night for the Japanese markets. As Abe and Kuroda awoke stunned that JPY had not broken above 100, things went from bad to worse as USDJPY slid 60 pips from the last US day-session. The Japanese equity market is following the FX pair in its hyper-correlated way as TOPIX is struggling with its first loss in eight days. The Japanese bond market is not doing well either, despite the BoJ’s JPY2.5 trillion monetization today. 7-year to 30-year JGBs are 5-7bps higher in yield (3-4 times the average move) and JGB Futures are suffering significantly with the 10Y down over almost a point – within a tick of triggering the TSE’s circuit-breaker for the 5th time in 6 days. While everything points to a ‘disorderly’ market (especially in bonds), we can rest assured they are on it:
- *KURODA CONFIDENT BOJ CAN BUY BONDS AS PLEDGED
Add to that the fact that JGB implied vols just hit a 10-year high and it seems all is well in the land of the setting sun once again.
Thanks to BrotherJohnF
2013-04-12 07:19:21
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