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I think everybody that owns JGB are selling them to BOJ. BOJ owns 50% of all JGB and there is still a lot to buy.twitter.com/profstonge/status/1539357032595193856?s=20&t=OJCiYYh4AdbXmeBc5TQBcw
35 sats \ 4 comments \ @taxd 22 Jun 2022 bitcoin
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0 sats \ 0 replies \ @siggy47 22 Jun 2022
Something has to give. Even the compliant citizens of Japan have their breaking point. I look at CNBC this morning and the Japanese 10yr is at .423% right now, well beyond the "control" range. Why isn't this the biggest financial story of the morning? Can someone who knows more about this than me explain?
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0 sats \ 1 reply \ @KingZing 22 Jun 2022
I don't even know what's going on anymore. I guess they can impose a law to increase or make JGB mandatory for all local funds and offload some of these eventually?
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0 sats \ 0 replies \ @taxd OP 22 Jun 2022
Will not this cause the problem that these funds then are forced to hold JGB that nobody wants to buy on a market? Thus decreasing the market cap of the fund?
I would not want to be a retired person in Japan now.
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0 sats \ 0 replies \ @taxd OP 22 Jun 2022
Some institutions, such as pension funds, must hold JGB by law (or?), but there must be a lot of free-float that can be offloaded to the BOJ. And this will cause severe inflation in Japan.
Am I right, SN?
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