Posted on 04/07/2013 12:16:55 PM PDT by whitedog57
The Bank of Japan announced their “Shock and Awe” monetary strategy on April 4th to inject $1.4 trillion into their economy in less than two years.
(Reuters) – The Bank of Japan unleashed the world’s most intense burst of monetary stimulus on Thursday, promising to inject about $1.4 trillion into the economy in less than two years, a radical gamble that sent the yen reeling and bond yields to record lows.
That was on April 4th. But on closing on Friday April 5th, the 10 year Japanese sovereign yield regained most of its decline.
If we look at the change in the Japanese Sovereign yield curve from April 3rd – 5th, you can see that the short-end of the curve 10 years and under) actually ROSE. It was only the long-end of the curve that declined.
While the Bank of Japan may celebrate the decline in the long-end of the Japanese sovereign curve, the vast majority of their enormous debt rolls over in under 10 years.
But the Yen/USDollar remains “shocked.”
Even the Nikkei has started losing the Central Bank-induced fizz from the announcement.
Let’s see what happens as the Bank of Japan emulates the Federal Reserve over the next two years. But this is not a promising start.
Shock and yawn is more accurate.
We are already doing this, just not on the same scale. But it won’t be long before we follow Japan.
Its the only way to keep the Entitlement state “sustainable”.
they should have a run on the banks with this announcement
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