๐จ JAPANโS BOND MARKET IN CRISIS: THE GREAT EXODUS ๐ฏ๐ต๐ $AXS
The demand for Japanese Government Bonds (JGBs) is absolutely cratering! ๐ฅ In a historic move, Japanese insurers offloaded a staggering -$5.2 billion in long-term bonds (10+ years) this past December. ๐ธ๐โโ๏ธ
This isn't just a blipโit is the largest monthly sell-off since data tracking began in 2004! $DUSK
๐ Breaking Records (The Bad Way)
5 Months of Selling: This marks the 5th straight month of net salesโthe longest selling streak on record. ๐๏ธ๐ฅ
Massive Liquidation: Over this period, insurers have dumped a net total of -$8.7 billion in long-term debt. ๐๐ $FOGO
๐ Auction Demand is Vanishing ๐ป
The trouble deepened on Tuesday during the 20-year government bond auction, where demand plummeted well below the yearly average:
Bid-to-Cover Ratio: Crashed to 3.19 (down sharply from 4.1 at the last auction). ๐๐
Below Average: This is significantly lower than the 12-month average of 3.34, signaling that buyers are losing appetite for Japanese debt. ๐๐ฆ
โ ๏ธ The Bottom Line
Japanโs bond market crisis is no longer just "developing"โit is deepening rapidly. ๐ช๏ธ As major institutional players exit and auction demand dries up, the pressure on the Japanese financial system is reaching critical levels. ๐ฆ๐
