Feb
28
Kuroda Negative Rate Bazooka Fizzles on Overnight Lending Freeze
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Outstanding balance of call market slid to record low
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Uncertain how deep overnight call rate will sink: MUFJ MS
Japan’s banks have almost stopped lending to one another in the overnight market, threatening to undermine the impact of the central bank’s negative-rates stimulus.
The outstanding balance of the interbank activity plunged 79 percent to a record low of 4.51 trillion yen ($40 billion) on Feb. 25 since Bank of Japan Governor Haruhiko Kuroda on Jan. 29 announced plans to charge interest on some lenders’ reserves at the monetary authority. Bond volatility has soared to a 2 1/2-year high as the evaporation of trading volumes in the call market dislocates funding of a range of debt investments…
Kuroda Negative Rate Bazooka Fizzles on Overnight Lending Freeze
