Japan: The New QE Will Be Massive

A sign for the Bank of Japan is seen in Tokyo, Japan, Wednes

If you want to see something really weird in the coming months, just take a look at the Japanese bond market: the new super-intervention by the BOJ will be something you have never seen


(original publishing date 11/03/14)

So the story is quite simple: every month Japan will issue new bonds for 10 trillion yens, and guess what ? Every month the Bank of Japan will monetize bonds for 12 trillion yens.

Those are weird numbers, aren’t they ?

Technically, the BOJ could now buy the 100% of new bonds issued by Japan, and the central bank would still have room for another 2 trillion yens bonds that already exist on the market.

Keep an eye on the bond market, if this scenario really becomes real, then expect the 0% nominal yield to be reached soon.


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