Asian Markets Are Hemorrhaging With Losses, Spearheaded by a Surge in the Yen

Things are starting to get sporty. Let me highlight a few points of concern.

No one is talking about the record amount of Chinese debt coming due in the second half of 2016, amounting to 2.1 trillion yuan, most of which is poorly rated crap. Secondly, the yen is inching closer and closer to that magical 100 v the dollar. If in fact the yen continues to climb and hit 100, look for markets to get fucking RAMSHACKLED.

As we speak, Asian markets are getting smoked. The NIKKEI is is leading the pack down the sewer, off by 2.1%

Japanese bonds are spiking again, pushing rates further into negative territory. The Japanese 10yr is now -0.2% and rates are negative all the way to 15 yr durations.

Here is that yen movement, pernicious and amazing all at the same time.

The House of Saud looks like they are moving towards a credit event.

One other thing no one is talking about is the widening of credit between periphery countries of Europe (PIIGS) and Germany. Portuguese-German bond spreads have widened to 336bps. If it gets over 400bps, your local CNBC anchor will discuss it.

Lastly, safe havens, GLD, Bitcoin (I can’t believe I said that) and SLV are soaring, higher by 1%, 3% and 1.5% respectively. Crude is lower by 1%.

Oh yeah, I almost forgot, the BOJ didn’t further degenerate itself tonight, which is disappointing those who like bad policy moves. Many believe this is the reason for the jarring move in the yen. The truth is, they had it coming.

“The BOJ will have to take bold action to arrest the strengthening yen and if it tries something in line with what it did before, there’ll be disappointment,” said Takeshi Minami, chief economist at Norinchukin Research Institute. “With the Brexit vote ahead, the BOJ couldn’t move this time because the result on June 23 may erase the impact of whatever it did now.”

Sleep tight.