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Not a Single Japanese 10-Year Bond Traded Tuesday: Death by BOJ
Some jobs might be threatened by automation. But when it comes to government bond trading in Japan, the biggest threat might be the country’s central bank. The Bank of Japan has vacuumed up so much of the government bond market -- in excess of 40 percent -- that it’s left fewer securities for others to buy and sell. Some other buyers, such as pension funds and life insurers, also tend to follow buy-and-hold strategies. That’s the backdrop to Tuesday’s session, when not a single benchmark 10-year note was traded, according to Japan Trading Co. Naoya Oshikubo, a rates strategist at Barclays Securities Japan ... (full story)