Bloodbath in Asian Markets Today; It Looks Like The Bond Market Just Broke
- 15 hours ago
- 2 min read
Source: Hal Turner
ABSOLUTE BLOODBATH IN MARKETS TODAY!! OVER $1,000,000,000,000.00 HAS BEEN WIPED OUT FROM ASIAN STOCK MARKETS IN JUST 30 MINUTES AT OPEN.
KOREA: -5.5%
CHINA: -3.5%
JAPAN: -3.1%
TAIWAN: -2.1%
CHINA AND JAPAN ARE NOW DUMPING U.S. TREASURIES TO COVER THE DAMAGE…
The Bond Market Just Broke:
Today, the US Treasury admitted the long end of the bond market is broken. Nobody wanted the 10-year, 20-year, or 30-year debt. The 30-year yield just slammed into its highest level since 2007 (peaking near 5.33%).
So what did they do?
They announced they’re AT LEAST DOUBLING their liquidity buybacks of those exact long-term bonds, from a $2 billion max per operation to $4 billion+ starting September 9.
They’re literally borrowing short-term money to buy back their own long-term debt. Classic desperation move. Bond prices spiked, yields crashed 9-10 bps, and futures ripped higher the second the news dropped.
Meanwhile Japan, still the #1 foreign holder of US Treasuries is dumping them to fund currency interventions.
The BoJ and finance minister threatened of bold actions to save the yen. BoJ’s Yuto apologized for the measures being prepared.
June data just showed Japan cut holdings by another $26.4 billion (down to $1.117 trillion).
That follows the massive joint US-Japan yen-buying intervention in late July that burned tens of billions of dollars trying to stop the yen from hitting 40-year lows near 164. The yen has already given back more than half those gains and is back above 159.
When the biggest foreign buyer is selling Treasuries to defend its own currency… and the US government is forced to step in and buy its own unwanted long bonds… this isn’t “market support.” This is the system flashing red.
The famous City Of London banker LordBelgrave had already warned about the planned debt, oil + currency financial crisis at the start of the year. It is now being executed.
Yields are the gravity of everything, your mortgage, stocks, crypto, gold. The can just got kicked harder and farther. Don’t look away.
