Anyone following this?
Discussion
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Interesting
Is it time for Yen carry trade experts to come out of the woods again?
All sovereign debt is a shitcoin
Japan's economy has been in a state of decline since the WWII era. They're, just now, experiencing the consequences of their postponementπ€·.
40 year bonds... didnt know they were there yet. Rest of world order countries on their way to intergenerational bond enslavement too.
What is this ?
Nah, but over a 40-year period 3.39% still seems way too low for fiat in a country with terrible demographics. Yield probably goes way higher as they lose the ability to control it
Yield is artificially suppressed by the forced investment of 40% of retirement account balances in govt bonds.
It appears the dam is finally breaking...
what does it mean, no buyers, or too much selling, or something?
I think the Bank of Japan have really pulled back their purchases of long term bonds so more supply causes yields to go up.
For years the Bank of Japan has capped yields (yield curve control), to keep borrowing costs really low. I think they have really stepped back from doing this and it means long bonds are catching up fast to reflect inflation and reality.
I guess people are saying "if you want my money for 40 years, you will have to pay me a lot more for it." Investors no longer trust the government to keep inflation low or debt under control for decades, so they are demanding higher returns.
People watch this as it could signal the end of the cheap money in Japan...they get concerned it could cause a big unravelling event.
I see, so if BOJ don't get back in soon something might break. like a game of chicken
Yes!
Japan PM admits situation worse than Greece
brace for impact
Fuark
nothing stops this train.
wat mean, explain like i'm a smart seven year old
The yield is going up, which means the price people are willing to pay is going down (they pay more to incentivize people to buy).
Japan for years has engaged in pretty heavy-duty yield curve control, meaning they're buying their own bonds to keep prices in the "right" places. But, like smoking your product, it never ends well.
I don't know what triggered this latest jump but the curve pointing up for the last 5 years straight says that the bond market is less and less convinced that japan will be able to pay back on their bonds.