Japan 10-year bond yield goes negative for first time

“It’s almost like a panic,” said Hideo Shimomura, the chief fund investor in Tokyo at Mitsubishi UFJ Kokusai Asset Management.

I wod say that people panic when their investments start losing money and banks start to levy negative rates!

A herd mentality to hedge and find solace. To 'pay to lend', investors paying to lend their feckless government money under any circumstances is a lousy deal, the consequence of a chaotic and disastrous monetary policy!!

To drive investors into the belief that the “safer” government bonds is the only option than riskier assets, will hasten a sharp economic slowdown, recession with the prospect of increased corporate and sovereign defaults.

All has a deflationary effect. Paying out and receiving less can only be profitable, if the future price of goods and services has falls sufficiently. The 'short' mentality, Our political leadership should be carted off to the asylum en masse!!!!!!

And some people thought (and still do) Kuroda is a genius and not just insane.

Though the BOJ made a tactical mistake by bringing rates to negative, it should be more aggressive to prevent further panic by aggressively selling Yen and buying US$. BOJ & MOF should decisively take advantage of the very strong Yen, and sell lots of Yen and buy US$. Get the US$ and purchase US stocks & bonds & oil, foreign assets. In this way 3 benefits are obtained: 1. Yen will weaken, helping the economy & markets. 2. Increased in foreign reserves. (Just print more Yen if market players still want the Yen to appreciate). 3. Increased in higher yielding foreign investments and assets.