"Yields in Japan are stable" Kuroda added... One glimpse at the chart below and its clear how 'stable' the Japanese bond market has become - reminding us somewhat of Monty Python's Dead Parrot sketch. As one veteran bond trader exclaimed, "they killed the biggest bond market in the world."

This is "the result of YCC [Yield Curve Control] policy" he bragged, before admitting that it "would be hard to continue YCC if trust in debt was lost," but Kuroda reminded his audience that "because BoJ has seigniorage, trust in yen won't be lost."

But is that trust starting to fade?

As Bloomberg notes, The Bank of Japan has vacuumed up so much of the government bond market -- in excess of 40% -- that it's left fewer securities for others to buy and sell. Some other buyers, such as pension funds and life insurers, also tend to follow buy-and-hold strategies.