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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Box-By-The-Riviera™ who wrote (214429)	5/19/2025 9:23:27 PM
From: TobagoJack	Respond to of 220061

re <<stuff>> … Excluding physicals am now at 90% cash after doing 5% rotation to oil (0883.HK - roughly equivalent to XOM) structured / equity-linked product to capture come ex-dividend and interest payouts … on way to bank to do-do finance.yahoo.com

To: Box-By-The-Riviera™ who wrote (214429)	5/20/2025 5:51:29 AM
From: TobagoJack	Read Replies (1) \| Respond to of 220061

Nothing to be concerned about unless you wish to concern yourself … just another narrative bloomberg.com Japan Bonds Plunge as Weak Auction Adds to Fear Over BOJ Retreat By Mia Glass May 20, 2025 at 11:48 AM GMT+8 Updated on May 20, 2025 at 3:54 PM GMT+8 The slump in Japanese bonds worsened after the weakest demand at a government debt auction in over a decade, driving up yields on 20-year, 30-year, and 40-year bonds. Summary by Bloomberg AI The surge in yields highlights structural challenges in Japan's debt market, concerns over rising government spending, and the central bank's retreat from the market, with key Japanese buyers like life insurers not filling the gap. Summary by Bloomberg AI The result is a steep bond curve, with market participants divided on how quickly the BOJ should reduce purchases of government bonds, and the Prime Minister expressing caution over additional government spending amid rising borrowing costs. Summary by Bloomberg AI Watch The slump in Japanese bonds worsened Tuesday after the weakest demand at a government debt auction in more than a decade highlighted worries over the central bank’s retreat from the market. The rout drove up the 20-year yield by about 15 basis points to the highest since 2000, while the yield on 30-year bonds climbed to the most since that maturity was first sold in 1999. Yields on the 40-year tenor rose a record high in a sign of nervousness ahead of a sale of that debt next week. The surge in yields underscores structural challenges particular to Japan’s debt market, along with the concerns of bond investors globally about the risks posed by rising government spending. Key Japanese buyers like life insurers aren’t stepping in to fill the gap as the central bank scales back its purchases of the nation’s bonds. Meanwhile, the Prime Minister’s comparison of his own nation’s fiscal position to that of Greece this week sharpened the focus on Japan’s huge debt burden. The result is that Japan’s bond curve is the steepest among major economies, even as yields globally are being driven higher, including for US Treasuries. “I don’t want to touch super-long bonds,” said Ryoma Nagatomo, a senior fund manager at Norinchukin Zenkyoren Asset Management, citing simmering fiscal risks and oversupply. “The only way to improve market sentiment for super-long bonds is for the authorities to take action.” Market participants were divided in opinions on how quickly the BOJ should reduce purchases of government bonds, according to reference material released Tuesday after meetings with the central bank. The views from representatives at banks and securities firms, as well as buy-side groups, will inform the bank when it reviews its debt buying at a policy board meeting on June 16-17. Read: Japan’s Surging Yields Put Policymakers in a Tough Position Prime Minister Shigeru Ishiba said in parliament Monday that he disagrees with the idea of funding tax cuts with Japanese government bonds, signaling caution over additional government spending when the nation’s borrowing costs are rising. “The government is not in a position to comment on interest rates, but the reality is we’re facing a world with them,” the premier said. “Our country’s fiscal situation is undoubtedly extremely poor, worse than Greece’s.” The surge in yields comes as a time of underlying shakiness in the Japanese economy, which flipped back into reverse in the first three months of the year. Uncertainty also remains over trade talks with the US, with Japan seeking the removal of all additional US tariffs on its goods. BOJ Tapering Weighs Heavily on Demand for Japan’s Bonds Quarterly change in JGB holdings by major investor groups Sources: BOJ, JSDA Note: Excluding BOJ, latest figures are Bloomberg estimates. Data as of March 31 The bid-to-cover ratio at Tuesday’s 20-year bond sale — a key gauge of investor appetite — fell to the lowest since August 2012. “The results were even worse than I had expected,” said Katsutoshi Inadome, a senior strategist at Sumitomo Mitsui Trust Asset Management Co. “Thirty- and 40-year bonds were being sold due to fiscal expansion risks and declining liquidity, but deteriorating market conditions have now spread to 20-year bonds, which had been relatively stable.” What Bloomberg Strategists Say...The super-long sector of the Japanese curve has been suffering from something akin to a domestic buyer’s strike, even though global funds have been piling into the long end. — Mark Cranfield, Markets Live strategist. Read more on MLIV. In another sign of sluggish demand at the bond sale, the tail, or the gap between average and lowest-accepted prices, came in at 1.14, the longest since 1987.