🚨 Japan just witnessed its weakest 20-Year Government Bond auction since 1987, triggering a spike in long-dated yields:
📉 Bid-to-cover ratio at lowest since 2012
📉 Tail (spread between avg. & lowest accepted bid) was massive
📈 40Y JGB yield hit all-time highs
📈 30Y at highest since it was introduced in 1999
📈 20Y at highest level since 2000
This is a BIBLICAL move in the JGB complex.
📌 The implications?
Japan’s carry trade—a pillar of global liquidity—could be under pressure
Global bond markets may reprioritize risk
BoJ is walking a tightrope: intervene now or risk a credit crunch later?
📉 Bid-to-cover ratio at lowest since 2012
📉 Tail (spread between avg. & lowest accepted bid) was massive
📈 40Y JGB yield hit all-time highs
📈 30Y at highest since it was introduced in 1999
📈 20Y at highest level since 2000
This is a BIBLICAL move in the JGB complex.
📌 The implications?
Japan’s carry trade—a pillar of global liquidity—could be under pressure
Global bond markets may reprioritize risk
BoJ is walking a tightrope: intervene now or risk a credit crunch later?
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.