Japan Bond Wipeout Was Triggered by Just $280 Million of Trading

An electronic stock board inside the Osaka Securities Exchange. 

Photographer: Akio Kon/Bloomberg

It took just $280 million of trading to push Japan’s $7.2 trillion government bond market into meltdown.

That was the combined turnover for the country’s benchmark ultra-long maturity bonds as they plummeted on Tuesday, unleashing a $41 billion wipeout across the Japanese curve that sent shockwaves through global markets.