The Analyst Community Has Spoken and They’re Inexorably Bearish on Japan’s New Yield Curve Scheme

The new moves by the BOJ have been widely dismissed as yet another scheme in an effort to create the illusory inflation they so desperately desire. Because of the litany of failed central bank efforts by the BOJ, markets have punished them with a brutal 19% spike in the yen, effectively front running every single thing they’ve tried to do with a mocking disposition.

As usual, the chardonnay drinking analyst across Wall Street and abroad have offered nothing but acrimonious disapproval to Kuroda’s recent gambit.

Deutsche Bank: New policy equates to the end game for the BOJ. Plan will produce an ‘anchor’ for long end nominal yields and borrowing costs will go up. Moreover, he believes Yen will trade 94 v the dollar by year end. Should inflation expectations fall, credit conditions will tighten and growth will be constrained.

Macquarie: Japan’s current account surplus will ‘bedevil’ the BOJ’s flaccid attempts to create inflation. Deflation is entrenched and these new policies are fucking stupid.

Bank of America: They believe the Yen will weaken next year, but first strengthen this autumn. The retarded bank cites confusion as a contributing factor in their asshatted assessment, stating “The newly introduced 10-year yield target and quantitative target cannot coexist in a clean form.”

Credit Suisse: The Swiss banks eviscerates the BOJ plan, saying “We fear the market has trained itself to be very accepting of the BoJ’s more meager offerings and that is why it still tries to beef up the story around the efficacy of BoJ policy in terms of weakening the JPY.”

Crossborder Capital: Placing faith in the BOJ’s ability to shape the yield curve is woefully misguided and is dangerous. “In short, the new BoJ policy will distort the term structure, could strengthen the Yen and will likely underscore the need for even more fiscal support.”

Moreover, they believe central banks are unable to shape the yield curve and and equates it to “squeezing a balloon full of air in one place [it] simply pushes out the balloon somewhere else.”