by Jeff Berwick, Dollar Vigilante:
On April 11th we went public stating that shorting Japanese Government Bonds (JGBs) was an effective means of, “Profiting from The End Of The Monetary System As We Know It” (TEOTMSAWKI).
Less than a month later, on May 10th, after a month replete with numerous halts of the market over intraday crashes JBGs had their worst day in the last five years. Yields rose higher by 11bps to 70bps in the 10 year bond and ended up 10 basis points higher on the day.
And, of course, the value of the bonds is inverse to the interest rate. That is a 16% rise in the interest rate level in a matter of hours. That is a massive move in the bond market.
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