- When ¥11 Trillion Is Not Enough: Japan’s QE 9 Disappoints, Halflife Zero, Time For QE 10!
by Tyler Durden, www.zerohedge.com
It was only yesterday that we pointed out the ever decreasing halflives of central bank interventions. We are grateful that none other than the biggest intervention basket case of all came out and proved us 100% correct, when the BOJ announced none other than QE 9 just one month after the impact from QE 8 fizzled about 8 hours after it was disclosed. This time around, the destructive “benefit” to the JPY was negative from the first second, resulting in the first instance of monetary easing that.. wasn’t. Japan just came up with a brand new New Normal concept: tightening through easing, when its ¥11 trillion intervention proved to be woefully insufficient for a market addicted to ever more liquidity injections.
First, this is what QE 9 formally was (full statement here) (see chart top of post):
The assets affected by QE 9 were across the board. The BOJ would monetized the following assets:
– JGBs: + ¥5 trillion
– Bills: + ¥5 trillion
– ETFs: + ¥0.5 trillion
– Corporate Bonds: + ¥0.3 trillion
– CP: + ¥0.1 trillion
– Japanese REITs: + ¥0.01 trillion
Alas all of this was for nothing, and as we showed previously, the USDJPY, which had been trading at 80.00 before the announcement, ad dropped immediately by 50 pips on the announcement of QE 9, presenting the first zero (effectively negative) halflife monetary intervention ever!