…but it is:
The Bank of Japan is purchasing government bonds at a record pace this year, a factor that likely prompted its recent move to allow larger yield movements so as to reduce the strain on its control of longer-term interest rates.
The race to the bottom continues
Several of the statements in the article were simplistic and held very little water. Central banks are not forced to act. Press reporters are drama queens.
This snippet
“Debt purchases to defend the RBA target came at a financial cost given the subsequent increase in yields, it (note it) said.” (I would not call her an “it”. She is very sloppy. said Naomi Muguruma, chief fixed-income strategist at Mitsubishi UFJ Morgan Stanley Securities in Tokyo.)
There is no such thing as a financial cost to a central bank. Not really. The actions of a central banks are inverse to the rest of the financial system.
Divitias the stress that is coming is individualized. Yes the institutions will stress as well. There can be some bankruptcies but the real pain will be individuals losing a lot of money. Mostly the losses will be most significant in commercial property. The equity markets may also follow suit. Stay long or fold? Who are you(generic)?