Japan 10-year govt bond auction lowest accepted bid 100.27 yen; yield 1.668 pct

[Sapiens]

http://www.forbes.com/markets/feeds/...fx3474216.html

TOKYO (XFN-ASIA) - The lowest accepted price at today's auction of 1.9 trln yen-worth of 10-year Japanese government bonds was 100.27 yen, giving a yield of 1.668 pct, the Ministry of Finance said.

Of the successful bids, 32.6747 pct were made at the lowest price, while the average bid was 100.29 yen, giving a yield of 1.6666 pct, the ministry said.

Designated as the No 285 issue, the bonds will be issued on March 20 and will mature on March 20, 2017, the ministry said.

The ministry received 6.7038 trln yen in competitive bids and accepted 1.7165 trln yen-worth, giving a bid-to-cover ratio of 3.905 to one. This means the amount of competitive bids received was 3.905 times the amount of bonds offered for sale.

At the previous auction of 10-year debt, on Feb 1, the lowest accepted price was 99.96 yen, giving a yield of 1.704 pct, with a bid-to-cover ratio of 2.762 to one.


(1 usd = 118.29 yen)

yasuhiko.seki@xfn.com

Look at the bid-to-cover ratio! Where is all that money coming from?!!!

[Finster]

Re: Japan 10-year govt bond auction lowest accepted bid 100.27 yen; yield 1.668 pct

http://www.forbes.com/markets/feeds/...fx3474216.html


Look at the bid-to-cover ratio! Where is all that money coming from?!!!

... uhmmm ... global stock markets, perhaps? ;)

[jk]

Re: Japan 10-year govt bond auction lowest accepted bid 100.27 yen; yield 1.668 pct

so the boj just raised short rates from 0.25 to .5, and the japanese long bond yield just went down from 1.704 down to 1.668. who can calculate when the yen yield curve inverts?

[Spartacus]

Re: Japan 10-year govt bond auction lowest accepted bid 100.27 yen; yield 1.668 pct

but you can't really "take money out" of the stock market.

If you sold stock to buy bonds, for you to get money OUT of the stock market, someone else had to buy - put money INTO the stock market.

; )

... uhmmm ... global stock markets, perhaps? ;)

[jk]

Re: Japan 10-year govt bond auction lowest accepted bid 100.27 yen; yield 1.668 pct

but you can't really "take money out" of the stock market.

If you sold stock to buy bonds, for you to get money OUT of the stock market, someone else had to buy - put money INTO the stock market.

; )

you can reduce margin/leverage.

[Sapiens]

Re: Japan 10-year govt bond auction lowest accepted bid 100.27 yen; yield 1.668 pct

so the boj just raised short rates from 0.25 to .5, and the japanese long bond yield just went down from 1.704 down to 1.668. who can calculate when the yen yield curve inverts?

Something stinks here, I read somewhere the Japanese savings were going down, (I am looking for the article) and here their long rates are going down?

What gives?

This tells me the liquidity problem has a long way to go. Are they really THAT efficient and productive?

-Sapiens

[Sapiens]

Japan household savings rate rises for 1st time in 8 yrs in 2006 - report

Scratch that on the savings rate...

Japan household savings rate rises for 1st time in 8 yrs in 2006 - report

http://www.fxstreet.com/news/forex-n...3-287aece2a2e4

TOKYO (XFN-ASIA) - The savings rate at Japanese households headed by a salaried worker averaged 27.5 pct last year, up 2.2 percentage points from 2005 and the first increase in eight years, the Nikkei newspaper reported, citing a survey by the Internal Affairs Ministry.
The rate, which calculates savings as a percentage of disposable income, turned upward as those aged 30-60 curbed spending and opted to save money for purposes such as mortgage repayments, the daily said.
While disposable income increased 0.1 pct on the year to an average 440,000 yen a month, spending dropped 2.8 pct and savings rose 8.6 pct.
The savings rate had been declining since peaking at 28.7 pct in 1998 as corporate restructuring left
households with less disposable income and individuals reduced savings to make ends meet.
In 2006, the savings rate came to 32.6 pct for those in their 30s, 29.8 pct for those in their 40s and 27.8 pct for those in their 50s, showing increases ranging from 1.9 to 3.8 points. But the rate decreased for those below 30 as well as seniors aged 60 and older, according to the report.
mas

[bart]

Re: Japan 10-year govt bond auction lowest accepted bid 100.27 yen; yield 1.668 pct

but you can't really "take money out" of the stock market.

If you sold stock to buy bonds, for you to get money OUT of the stock market, someone else had to buy - put money INTO the stock market.

; )

If that were totally true, total stock market investments would never go down.

[Spartacus]

Re: Bart and JK, I was half serious -taking money out of the stock market

My intent was to tweak someone's nose a little -they had written the identical thing, in reverse - I was only half serious.

(I'm guessing you both missed the smiley)

you can reduce margin/leverage.

[bart]

Re: Bart and JK, I was half serious -taking money out of the stock market

My intent was to tweak someone's nose a little -they had written the identical thing, in reverse - I was only half serious.

(I'm guessing you both missed the smiley)

Ooops - yes I did miss the smiley. I'm used to the graphical ones here.

You get extra points for tweaking bart and a rimshot too.

http://www.nowandfutures.com/grins/rimshot.mp3

[Finster]

Re: Japan 10-year govt bond auction lowest accepted bid 100.27 yen; yield 1.668 pct

but you can't really "take money out" of the stock market.

If you sold stock to buy bonds, for you to get money OUT of the stock market, someone else had to buy - put money INTO the stock market.

; )

That may be in a global sense, but the people putting money into yen were probably getting a good chunk of it from sales of stock. And another chunk from people buying bonds by selling stock. The yen "carry trade" is (was?) huge.

What's more, an awful lot of money used to buy other assets in the first place was borrowed into existence - sold short - and when that short was covered it went back where it came from. So even in the global sense we are not working with a physics-like law of conservation - money can be created from nothing and returned to the same state.

[jk]

Re: Japan 10-year govt bond auction lowest accepted bid 100.27 yen; yield 1.668 pct

What's more, an awful lot of money used to buy other assets in the first place was borrowed into existence - sold short - and when that short was covered it went back where it came from. So even in the global sense we are not working with a physics-like law of conservation - money can be created from nothing and returned to the same state.

there's something called quantum foam in physics. in a vacuum there is the simultaneous creation of particles and antiparticles which then meet up and annihilate each other out of existence. kind of like assets and liabilities.

[Finster]

Re: Japan 10-year govt bond auction lowest accepted bid 100.27 yen; yield 1.668 pct

there's something called quantum foam in physics. in a vacuum there is the simultaneous creation of particles and antiparticles which then meet up and annihilate each other out of existence. kind of like assets and liabilities.

.........
:eek:

[Jim Nickerson]

Re: Japan 10-year govt bond auction lowest accepted bid 100.27 yen; yield 1.668 pct

.........
:eek:

Finster,

I truly cannot convey how much I continue to be "blown away" with your knowledge of history and your insight into so much about the markets. I always stand in awe, and then you post something like this--:eek: !!!

Am I to take this that even though you've an interest in physics, jk, gotcha!

[Finster]

Re: Japan 10-year govt bond auction lowest accepted bid 100.27 yen; yield 1.668 pct

Finster,

I truly cannot convey how much I continue to be "blown away" with your knowledge of history and your insight into so much about the markets. I always stand in awe, and then you post something like this--:eek: !!!

Am I to take this that even though you've an interest in physics, jk, gotcha!

Ahh, Jim, sometimes a little bit of ambiguity is just the ticket ... ;)