Bank of Japan Spends A Record $81 Billion To Avert Collapse, But $10 Trillion JGB Market Is Now Completely Broken

"The amount of bonds the central bank has lent "temporarily" to financial institutions to
relieve supply tightness has hit a record, Bloomberg data show. The BOJ lent 3.2 trillion yen ($23.9 billion) of JGBs through its Securities Lending Facility on Thursday, well above the 2.3 trillion yen lent at the peak of coronavirus fears in March 2020. Bloomberg has calculated how much it cost the BOJ to preserve calm after last week's catastrophic slide in futures, and the answer is some 10.9 trillion yen ($81 billion) of government bond purchases last week, the most on record. " ZH