They Did it All for the Glory of Love

While equities here stateside are mostly ignoring the Dollar/Yen surging past 151 today, we still have a busy week ahead of us with the FOMC tomorrow, AAPL earnings Thursday evening, followed by the jobs report on Friday. 

On that note, did the Bank of Japan really tweak their infamous Yield Curve Control policy out of love?

I see yet another major central bank trapped by their own weak policies for decades, as last evening they discarded their explicit 1% ceiling for 10-year JGB (Japanese Government Bond) yields.

No, it was not out of love. 

It was, after all, the fact that their attempts at manipulation of markets are now failing before our eyes, an inevitable and just demise for the manipulator. 

Specifically, with inflation rearing its ugly head in Japan, the BoJ has no choice but to tweak the Yield Curve Control in a desperate attempt to stabilize their sliding Yen currency. That is not happening, however, likely due to them betraying their weak position after decades of pushing markets around with their faux-bravado, not unlike The Fed. (As the Dollar/Yen rises, the Yen slides lower as it is the denominator in that currency cross).  

But just like most manipulative people and entities in life, when you finally push back hard on them they fold like a cheap suit, revealing themselves to be truly weaker than you ever thought possible. 

And so here we are with major central banks in developed economies still early in the process of betraying their weakness.

Just you wait until we get to The Fed's demise.