In a move that caught nearly everyone off guard, the Bank of Japan raised the ceiling on its Yield Curve Control policy today, moving it from 25 basis points to 50 basis points. This move has pushed rates higher around the globe, too, but it has also weakened the POSX which, to the HFT algos, is seemingly all that matters.
What a Krazy overnight and day this has been. The pressure on the BoJ to raise the YCC ceiling had been relenting over the past few weeks. However, the most recent hikes by The Fed, the ECB and the BoE must have been too much for it to bear.
The...
