How distorted the debt market for CB's has become.
Not a Single Japanese 10-Year Bond Traded Tuesday: Death by BOJ
By
Chris Anstey
and
Hidenori Yamanaka
March 14, 2018, 11:47 AM GMT+10
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.