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Bank Of Japan Breaks Bond Market As Holdings Rise To Hilarious 387,000,000,000,000 Yen
When last we checked the numbers on the "Tokyo Whale," the Bank of Japan's ETF holdings had ballooned 80% in the short space of 12 months to a cartoonish 16 trillion yen.
That would be "trillion" with a "t" and that total would represent something like three quarters of the entire Japanese ETF market:
(SocGen)
The truly hilarious part about that effort is the fact that something like 85% of ETF purchases announced by the BoJ have occurred on days where the TOPIX registered a negative return
One should add this situation has effects outside of Japan. Difficult as it is, quantifying those effects should have the same priority as say, constructing tsunami warning systems
Soooo…help me to understand what is happening here. Are they simply purchasing their new issuance, or are they gobbling it up wherever they can find it? What is the end-game here? Do they purchase all of the gov’t of Japan debt, then default on a debt that they owe…themselves?
I have no idea what is happening here.