Think about this…
The Bank of Japan makes a tiny, minuscule, ridiculous alteration to its monetary laughing gas policy, and sends bonds and markets rolling
Daniel, this is a repeat of an old story. I commented on it on Feb 2. And Japan made the same pledge even earlier.
— Mike Mish Shedlock (@MishGEA) July 23, 2018
This is completely insane. t.co/aMAgRGkVlO
— Daniel Lacalle (@dlacalle_IA) July 23, 2018
After hinting that it might not continue, forever, to buy every risk asset, at any price, Japanese bond yields “spiked” to…0.09%. Even this microscopic level of above-zero interest was seen as totally unacceptable, so the BOJ quickly folded, and said it would return to buying an “unlimited” number of bonds.