Not sure if anyone noticed but Japan is currently imploding and everyone is running to hard assets.

by


For the second day in a row, there have been no buyers literally no bids for Japan’s 30-year and 40-year government bonds. Yields on both have exploded higher, with the 40-year jumping past 3.63%, and the 30-year hitting 3.16%. These are massive, sudden moves that point to one thing: something is breaking beneath the surface.

The Bank of Japan has spent years trying to suppress volatility in its bond market using a policy known as yield curve control essentially capping interest rates on shorter-term bonds. But that approach has created severe distortions. It worked for a while, but now the longer-term part of the bond market where investors are most sensitive to risk and inflation is breaking away from that control. And for now, the BOJ appears to be sitting on its hands.





This is happening elsewhere too: