– Japanese Stocks Tumble After BoJ Bond-Buying Operation Fails For First Time Since Abenomics (ZeroHedge, Oct 17, 2014):
Having rotated their attention to the T-bill market in Japan (after demand for the Bank of Japan’s cheap loans disappointed policymakers) in an effort to ensure enough freshly printed money was flushed into Japanese markets, the BoJ now has a major problem. For the first time since QQE began, Bloomberg reports the BoJ failed to buy all the bonds they desired. Whether this is investors unwilling to sell (preferring the safe haven than stocks or eu bonds) or that BoJ has soaked up too much of the market (that dealers now call “dead”) is unclear. Japanese stocks – led by banks – are sliding as bond-demand sends 5Y yields (13bps) to 18-month lows.
…