JGBs: No Takers?: FT

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It’s a well accepted rule of thumb that when it comes to markets, August can be pretty mundane. Except in 2015 and 2008, of course.

But there’s a difference between sleepy markets and no markets it all. Which seems to be the case when it comes to Japan’s benchmark government bond. Via a flash from Bloomberg:

Japan’s benchmark 10-year bond did not trade
on Tuesday, the first time since June 1 this has occurred,
according to data from Japan Bond Trading Co.
* Activity in Japanese government bonds has waned in recent days
due to tight trading, general lack of direction in markets,
upcoming Obon holidays and as central bank ownership hovers near
50%
* Today’s lack of activity is particularly unusual as it also
falls on the day of a 10-year bond auction
* NOTE (June 1): Japan 10-Year Bond Sees No Trading for First
Time in a Year

Yes, that’s right, the benchmark fixed income instrument in Japan’s $11tn government bond market did not trade on Tuesday. At all. That’s despite the Bank of Japan announcing in late June that it was planning to scale back its purchases of the 10-year bond, in an apparent attempt to make the market more active. So it’s probably fair to say that today’s market action is not quite what it had in mind.

Still, in a world of manic equity trading Stateside, it’s quite nice to hear about some serenity in other parts of global markets. Even if it pretty much induced by the central bank alone.