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Don't remind me again today

The Japanese government bond market has recently shown some unusual signals.



First, let's talk about futures positions. The open interest for the 10-year JGB contract has now surged to 188,000 contracts, and to know that six months ago this figure was only about 123,000 contracts. In just a few months, it has skyrocketed by 65,000 contracts, a growth rate that is quite rare in historical data.

The yield over there is even more exaggerated. The yield on the 10-year government bond has now soared to 1.81%, an increase of 34 basis points from the previous low. A look back at historical records shows that the last time this level was seen dates back to the financial tsunami in 2008.

Futures prices are also dropping, with the latest quote at 135, a decline of 2.6%. This trend basically indicates one thing: the market no longer believes that the Bank of Japan can continue to maintain its ultra-low interest rate policy; funds are voting with their feet.
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WhaleStalkervip
· 12-01 03:01
The Bank of Japan is going to crash, the ultra-loose policy from 2017 just can't hold up anymore.
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MetaNeighborvip
· 12-01 03:01
The Bank of Japan is really going to be pressed down by the market this time; it looks like they really can't hold on any longer.
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ser_we_are_ngmivip
· 12-01 02:59
Wow, has the Bank of Japan been collectively abandoned by the market? 188,000 contracts of open interest just exploded.
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GasFeeDodgervip
· 12-01 02:55
The Bank of Japan is about to flip, the market can't stand it anymore.
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SlowLearnerWangvip
· 12-01 02:46
Oh no, it's coming again, the Bank of Japan really can't hold it this time. Wait, an open interest of 65,000 contracts? How did I not notice this half a year ago... Seeing this number now gives me a shock. That level from 2008 makes me feel uneasy, does this mean that the central bank's policy is really about to reverse?
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