With Nikkei 225 down 800 points from post-NIRP highs and USDJPY having almost roundtripped, there is little wonder that Japanese government bond yields are collapsing to imply considerably deeper NIRP to come. With 10Y JGBs on the verge of a negative yield, 2Y yields are now at -17bps (well below Kuroda’s -10bps level). Japanese bank stocks are a bloodbath with Nomura leading the way lower.
We’re gonna need more NIRP…
- *JAPAN’S TOPIX INDEX FALLS 3.3% TO 1,404.75 AT MORNING CLOSE
- *JAPAN’S NIKKEI 225 FALLS 3.1% TO 17,194.17 AT MORNING CLOSE
And that is what bonds are implying…
- *JAPAN’S 2-YEAR YIELD FALLS TO RECORD MINUS 0.17%
- *JAPAN’S 10-YEAR BOND YIELD FALLS TO RECORD 0.045%
With the entire curve to 8Y below BoJ’s -10bps level…
And Japanese bank stocks are plunging…
Led by Nomura’s 11%-plus plunge – the most since 2011…
via Zero Hedge http://ift.tt/1PyjmXO Tyler Durden