AuthorTopic: Japanese Bond Futures Halted Without Warning  (Read 755 times)

Offline Palloy

  • Sous Chef
  • ****
  • Posts: 3754
    • View Profile
    • https://palloy.wordpress.com
Japanese Bond Futures Halted Without Warning
« on: July 28, 2016, 08:45:58 PM »
Ceasing to trade in Government Bonds is definitely "The Way The World Will End", although this could be "just a glitch".

http://zerohedge.com/news/2016-07-28/japanese-bond-futures-halted-without-warning
Japanese Bond Futures Halted Without Warning
Tyler Durden
Jul 28, 2016



At 2051ET, Japanese government bond futures suddenly halted trading. There was no limit moves or sudden surge in volume and the Osaka Exchange has confirmed it is investigating the reasons for the halt. Following the earlier flash-crash in USDJPY, one wonders just what is going on.. and what is coming?

    *TOKYO EXCHANGE CONFIRMS HALT OCCURRED IN 10-YR JGB FUTURES

And sure enough once everyone started to look:

    *JGB FUTURES RESUMED; HALT BETWEEN 9:51 TO 10:12 A.M. TOKYO

Following this week's terrible tail in the 2Y JGB auction, and repeated claims by primary dealers that BoJ had killed the JGB market, it is unsurprising that such a 'glitch' could happen... but within an hour of the biggest BoJ announcement in history is too suspicious.
The State is a body of armed men

Offline Palloy

  • Sous Chef
  • ****
  • Posts: 3754
    • View Profile
    • https://palloy.wordpress.com
Re: Japanese Bond Futures Halted Without Warning
« Reply #1 on: July 28, 2016, 08:52:00 PM »
http://zerohedge.com/news/2016-07-28/usdjpy-plunges-again
USDJPY Plunges Again
Tyler Durden
Jul 28, 2016

Japanese 'markets' are total disaster tonight...

Liquidity is gone... as another 104.00 run breaks...



Yen futures again show the surge in volume...



“There was no visible news, but markets are nervous ahead of the BOJ meeting,” said Yuji Saito, Tokyo-based head of the foreign-exchange department at Credit Agricole SA.

This is what happens when everything becomes binary - based on a handful of ivory tower academics fumbling in the dark.
The State is a body of armed men

Offline Palloy

  • Sous Chef
  • ****
  • Posts: 3754
    • View Profile
    • https://palloy.wordpress.com
Re: Japanese Bond Futures Halted Without Warning
« Reply #2 on: July 28, 2016, 11:04:37 PM »
And the announcement that they were trying to anticipate is:

http://zerohedge.com/news/2016-07-28/bank-japan-shuns-government-market-pressure-leaves-qe-rates-unchanged-questions-poli
Bank Of Japan Shocks Market, Shuns Government Pressure: Leaves QE, Rates Unchanged, Questions Policy Effectiveness
Tyler Durden
Jul 28, 2016

Expectations were extremely high heading into tonight's BoJ decision, and market liquidity disappeared with massive violent swings in FX, rates, and equity markets before Kuroda unleashed his disappointing statement:

    *BANK OF JAPAN TAKES ADDITIONAL ACTION
    *BOJ EXPANDS PURCHASES OF ETFS TO 6T YEN
    *BOJ DOUBLES USD LENDING PROGRAM TO $24B

But...

    *BOJ MAINTAINS POLICY BALANCE RATE AT MINUS 0.100%
    *BOJ BOARD VOTES 7-2 TO KEEP NEG RATE UNCHANGED
    *BOJ MAINTAINS MONETARY BASE TARGET AT 80T YEN

Finally, details are emerging of the stimulus package, NHK reporting:

    ~7.5t yen of fiscal spending
    ~6t for fiscal investment and loan financing program
    15,000 yen handouts for low-income people
    10.7t yen for infrastructure spending such as maglev line, ports
    10.9t in SME support to weather Brexit

And most fascinatingly...

    *KURODA ORDERS ASSESSMENT OF POLICY EFFECTIVENESS NEXT MEETING

Raising doubts about the whole house of cards.

So to summarize, Kuroda left rates unchanged, left QE unchanged, implicitly raised doubts about the effectiveness of the world's monetray policy machinations.. and increased the stock market ETF buying to make sure that the illusion of normality is maintained.
The State is a body of armed men

Online RE

  • Administrator
  • Chief Cook & Bottlewasher
  • *****
  • Posts: 34217
    • View Profile
Re: Japanese Bond Futures Halted Without Warning
« Reply #3 on: July 28, 2016, 11:15:52 PM »

Japanese 'markets' are total disaster tonight...

KATY BAR THE DOOR!



HERE THEY COME TO SELL 'EM AGAIN

<a href="http://www.youtube.com/v/WrxlVjZJawQ" target="_blank" class="new_win">http://www.youtube.com/v/WrxlVjZJawQ</a>

RE
SAVE AS MANY AS YOU CAN

 

Related Topics

  Subject / Started by Replies Last post
1 Replies
603 Views
Last post July 29, 2012, 07:07:13 AM
by Golden Oxen
0 Replies
1295 Views
Last post January 02, 2015, 01:07:23 AM
by Slogger
1 Replies
462 Views
Last post May 09, 2015, 06:15:41 PM
by agelbert