{"id":17317,"date":"2016-02-02T14:16:01","date_gmt":"2016-02-02T19:16:01","guid":{"rendered":"http:\/\/olduvai.ca\/?p=17317"},"modified":"2016-02-02T14:16:01","modified_gmt":"2016-02-02T19:16:01","slug":"behold-unintended-consequences-japan-cancels-10y-auction-for-first-time-ever-due-to-sub-zero-rates","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=17317","title":{"rendered":"Behold Unintended Consequences: Japan Cancels 10Y Auction For First Time Ever Due To Sub-Zero Rates"},"content":{"rendered":"<h3 class=\"title\"><a href=\"http:\/\/www.zerohedge.com\/news\/2016-02-02\/here-come-unintended-consequences-japan-cancels-10y-bond-auction-fears-sub-zero-rate\" target=\"_blank\">Behold Unintended Consequences: Japan Cancels 10Y Auction For First Time Ever Due To Sub-Zero Rates<\/a><\/h3>\n<div class=\"tabs\">\u00a0Dear Bank of Japan, how do you spell unintended consequences:<\/div>\n<div class=\"node sticky\">\n<div class=\"content\">\n<ul>\n<li><strong>PLANNED MARCH SALE OF 10-YEAR JAPANESE GOVERNMENT BONDS THROUGH BANKS TO BE CANCELED AMID EXPECTED BELOW-ZERO YIELDS &#8211; NIKKEI<\/strong><\/li>\n<li><strong>JAPAN&#8217;S MINISTRY OF FINANCE IS EXPECTED TO ANNOUNCE WEDNESDAY THE FIRST-EVER DECISION TO CALL OFF SALES OF 10-YEAR JGBS- NIKKEI<\/strong><\/li>\n<\/ul>\n<p>Here is the full\u00a0<a href=\"http:\/\/asia.nikkei.com\/Markets\/Tokyo-Market\/Sales-to-individuals-to-be-called-off-over-negative-yields\">Nikkei report\u00a0<\/a>on this absolute stunner of a development:<\/p>\n<blockquote>\n<div class=\"quote_start\">The planned March sale of 10-year Japanese government bonds through banks to retail investors, municipalities and others\u00a0<strong>will be canceled amid expected below-zero yields following the Bank of Japan&#8217;s recent move to adopt negative interest rates.<\/strong><\/div>\n<p>The Ministry of Finance is expected to announce Wednesday the\u00a0<strong>first-ever decision to call off sales of 10-year JGBs.<\/strong><\/p>\n<p>The JGBs in question are sold through Japan Post Bank and regional banks in 50,000 yen ($415) units. The holder can cash out this new type of bond ahead of maturity.\u00a0<strong>With the ministry already having suspended sales of two- and five-year instruments, all sales will end. But variable-rate 10-year JGBs for retail investors will still be offered.<\/strong><\/p>\n<p>Winning bids at the ministry&#8217;s auction of 10-year JGBs on Tuesday translated to a record-low average yield of 0.078%.\u00a0<strong>As of Monday, nearly 70% of JGBs on the market already had negative yields, according to the Japan Securities Dealers Association.<\/strong><\/p>\n<p>Corporations and municipalities have started delaying their own issuances. Daiwa Securities Group has dropped plans to set conditions later this week for the issuance of seven- and 10-year straight bonds this month. The brokerage decided to take a fresh look at JGB yields and investor demand and said it has not decided when to proceed.<\/p>\n<p><strong>The Nagoya Expressway Public Corp., which had planned to float bonds later this week, has postponed the setting of conditions to next week.<\/strong><\/p><\/blockquote>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<p>&nbsp;<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Behold Unintended Consequences: Japan Cancels 10Y Auction For First Time Ever Due To Sub-Zero Rates \u00a0Dear Bank of Japan, how do you spell unintended consequences: PLANNED MARCH SALE OF 10-YEAR JAPANESE GOVERNMENT BONDS THROUGH BANKS TO BE CANCELED AMID EXPECTED BELOW-ZERO YIELDS &#8211; NIKKEI JAPAN&#8217;S MINISTRY OF FINANCE IS EXPECTED TO ANNOUNCE WEDNESDAY THE FIRST-EVER [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[57,1719,452,572,11764,1478,4318],"class_list":["post-17317","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-of-japan","tag-bond","tag-japan","tag-nikkei","tag-regional-banks","tag-yen","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17317","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17317"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17317\/revisions"}],"predecessor-version":[{"id":17318,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17317\/revisions\/17318"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17317"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17317"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17317"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}