Search On This Site

Custom Search


It only takes a few moments to share an article, but the person on the other end who reads it might have his life changed forever
Subscribe via RSS



Contact Information: 
Submit: articles [ at ] investmentwatchblog [dot] com 
Advertising: ads [ at ] investmentwatchblog [dot] com 
General: admin [ at ] investmentwatchblog [dot] com

Nikkei Slides After BOJ Minutes Released


We are trying to remember when the last time the BOJ minutes were important for global risk assets, and are drawing a blank. That’s how messed up the financial markets have become. That said, here are the highlights from the BOJ’s May minutes which appear to have spooked the Nikkei some 10 minutes ahead of the open.

  • HIGHER VOLATILITY MAY ACCELERATE JGB SELLING – Remember the “VaR shock?” 
  • CHINA ECONOMIC RECOVERY WEAKER THAN EXPECTED – Now it’s China’s fault
  • L-T RATE RISES DUE TO WEAK YEN, HIGHER OVERSEAS RATES – And higher overseas rates due to weak yen, also known as a Circular iteration
  • CAPEX HOLDS KEY TO JAPAN ECONOMIC RECOVERY – And that of the US too, and sadly there will be no CapEx under a centrally-planned ZIRP regime
  • FLEXIBILITY OF POLICY SUFFICIENT ENSURED – By daily jawboning
  • FEW MEMBERS: BOJ SHOULD WATCH FED POLICY EFFECT ON JAPAN YIELDS – we have several non-lemmings
  • ONE MEMBER:MUST KEEP FISCAL DISCIPLINE TO ENSURE BOND STABILITY – and a dissenter

And perhaps that quotes that spooked the market:

  • ONE MEMBER: TIMELINE SEEMED TO BE INCREASING BOND VOLATILITY – i.e., the longer it goes on, the more we lose control, and
  • FEW MEMBERS: BOJ SHOULD WATCH FED POLICY EFFECT ON JAPAN YIELDS – Get to work, Mr. Chairman

Nikkei down 250 in seconds:

http://www.zerohedge.com/news/2013-06-13/nikkei-slides-after-boj-minutes-released

Nikkei Drops Fast After Bank Of Japan Minutes

Read more: http://www.businessinsider.com/nikkei-falls-after-bank-of-japan-minutes-2013-6#ixzz2W9NtUUwP

40 Total Views 1 Views Today
Did you already share this? No? Share it now: