“That Would Be Crossing The Rubicon”: The BoJ Is About To Own More Than Half Of All JGBs

• “That Would Be Crossing The Rubicon”: The BoJ Is About To Own More Than Half Of All JGBs
  by Simon White, Bloomberg Markets Live commentator and reporter, via https://www.zerohedge.com/
  It’s hard to emphasize the scale and speed of the BoJ’s recent bond buying to defend the 0.25% yield cap on 10-year JGBs. June is not over, yet the BoJ has already bought over 25% more JGBs than it has in any month previously. Even so, the bank is barely able to keep the 10-year yield below the cap, while the rest of the curve is rising, despite the BoJ buying JGBs across maturities.
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  The spate of bond buying takes the BoJ to a place it almost certainly never envisaged when it started QE as a “temporary” measure back in 2001 — owning virtually half of the JGB market (49.2% by my calculations).
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