Bank Of Japan Unleashes Yield Curve Chaos: JGBs Inverted At Short- And Long-End

from Zero Hedge

You know you have ‘tinkered’ too much in the machincations of what dealers now call a “dead market” when the world’s largest sovereign bond market is inverted at the short-end and the long-end. The utter folly of Peter Pan policy has sent 10Y JGB yields below the BoJ’s overnight call rate for the first time ever…

[…] Japan’s 10-year bond yield dropped to a record -12.5bps Friday, falling below the the negative deposit rate introduced by the Bank of Japan last month, after the central bank’s operation to buy long-term debt met the lowest investor participation on record. Yields on government debt have tumbled since the BOJ announced Jan. 29 that it would start charging 10bps interest on some deposits held at the bank starting Feb. 16.

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