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Saturday, September 30 2023

Tokyo: BOJ marks 1st unrealized loss in 17 years on govt bonds

Tokyo: BOJ marks 1st unrealized loss in 17 years on govt bonds
Photo Credit : IANS

Tokyo: The Bank of Japan’s (BOJ) unrealized losses on its holdings of record-high government bonds amounted to 157.1 billion yen ($1.1 billion) in fiscal 2022 (April 2022-March 2023) for the first time in 17 years.

Bond holdings swelled 10.6 per cent to 581.72 trillion yen in book value, a record for any fiscal year-end, though its market value came to 581.56 trillion yen, translating into an unrealized loss of 157.1 billion yen, the BOJ reported.

It was the first time since March 2006 that the BOJ suffered a full-year loss in its government-bond holdings, reports Xinhua news agency.

The BOJ has been keeping short- and long-term interest rates depressed through massive purchases of government bonds.

In recent months, the central bank ramped up buying to counter market pressure in order to defend its limit on 10-year bond yields despite a global trend of monetary tightening.

BOJ Governor Kazuo Ueda has said that he believes it is necessary to retain monetary easing to ensure stable inflation accompanied by robust wage increases.

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