Japanese government bond demand is crashing: Japanese insurers sold -$5.2 billion of bonds with maturities of 10+ years in December, the largest monthly sale since data began in 2004. This marks the 5th consecutive monthly sale, the longest streak on record. Over this period, insurers sold a net -$8.7 billion of long-term bonds. Meanwhile, on Tuesday, Japan's 20-year government bond auction demand fell significantly below its 12-month average. The bid-to-cover ratio dropped to 3.19, down from 4.1 at the last auction and below the 12-month average of 3.34. This indicates weaker demand relative to the bonds on offer. Japan's bond market crisis is deepening.(The Kobeissi Letter)