After getting within 40 points of the 20% correction level, the Nikkei 225 – aided by a 60 pip ramp in JPY – staged a solid 400 point rampapalooza off the pre-market lows. But… JGBs started to sell off in a hurry as equities surged and something had to be done. By the close of the morning session, TOPIX is back at its opening levels -1% from the close, Nikkei 225 -0.5% (down 250 from the earlier highs), JGBs are unchanged, and JPY is practically unchanged, Japanese corporate credit spreads are notably wider (worse).
and the Nikkei 225 bounced off the 20% correction in pre-open trading but is fading fast now…
Whocouldanode? Well, it seems credit markets did?