- Think the Fed is bad? With the Bank of Japan vacuuming up the supply thanks to its own QE program, the government's new issue of 10-year JGBs looks like its going to go 24 hours without even a single trade. Typically, recent issues are the busiest traders, but the BOJ is buying about ¥7T of JGBs per month, roughly 70% of all new issuance. With rates so low and supply scarce, traders say sitting on the sidelines is less costly than trading.
- Don't expect the market to stay asleep for long, says traders, with one expecting a big jump in yields rather than a slow creep upwards. 10-year JGBs currently yield 0.61%.
- ETFs: JGBS, JGBT, JGBB, JGBL, JGBD