The only sane central banker in the world, the Bundesbank's Jens Weidmann, take the prize for today's quote of the day with the following:
- ECB'S WEIDMANN WISHES JAPAN `GOOD LUCK IN THEIR EXPERIMENTS'
So do we. They will need it.
And some other pearls from his speech:
- WEIDMANN: JAPAN SHOWS MONETARY POLICY CAN BE PUSHED INTO DIFFICULT SPOT
- WEIDMANN: COUNTRIES MUST RESPECT THE RULES OF MONETARY UNION
- WEIDMANN SAYS ASKING ECB TO CALM MARKETS CREATES A WEAK EUROPE
- WEIDMANN SAYS STATE INSOLVENCIES MUST BE POSSIBLE IN EURO AREA
And now cue the Princetonians.
Japanese Stocks Plunge 1000 Points - Biggest Drop In 26 Months
Developing...
UPDATE 1:
BOJ has injected 2 trillion yen ($19.4 billion) into the financial system, following massive downside break.
UPDATE 2:
Japanese government bonds have also plunged on Thursday, taking yields to their highest in a year.
UPDATE 3:
The 10-year JGB yield rose to 1.000 percent, its highest level since early April last year. The 10-year JGB yield has more than tripled from a record low of 0.315 percent hit on April 5, the day after the BOJ unveiled its unprecedented monetary expansion.
At the low the drop was over 1000 points (over 7%) from the earlier highs. Iy is the largest drop for the Nikkei 225 since March 2011.
UPDATE 4:
Following the BOJ intervention, the Nikkei has reversed itself and at 10:19 PM Pacific Time is now down 435.29 points or -2.79%
UPDATE 5:
The fall appears to be reaction to Bernanke's testimony and the FOMC minutes which were released later on Wednesday. The minutes indicated that some members were leaning toward slowing QE3 monetary base expansion.
UPDATE 6:
Closing report on Japanese markets via Bloomberg news:
Japan’s Topix index fell almost 7 percent, the most since the aftermath of the March 2011 tsunami and nuclear disaster, as financial companies plunged amid rising bond yields. The rout triggered a halt in Nikkei 225 Stock Average futures trading in Osaka.
Submitted by Tyler Durden on 05/23/2013 15:07 -0400
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