The Bank of Japan has revealed that it has incurred an unrealized loss of more than 870 billion yen on the government bonds it is buying under the current large-scale monetary easing.
This is the first time an unrealized loss has occurred since Governor Kuroda took office.
According to the interim financial results announced by the Bank of Japan from April to September, the market value of government bonds held by the Bank of Japan was 544.6462 trillion yen as of the end of September.
The market value fell below the book value, resulting in an unrealized loss of 874.9 billion yen.
This is because interest rate hikes in Europe and the United States put upward pressure on long-term interest rates in Japan, resulting in a drop in the price of government bonds.
The Bank of Japan says it will hold government bonds until maturity, so it does not mean that there will be an immediate financial problem.
Governor Kuroda has indicated that the current price rise is temporary and that he intends to continue with monetary easing. There are also concerns that the
On the other hand, as of the end of September, the Bank of Japan announced that the total assets amounted to more than 685 trillion yen at the end of September. decreased by more than 38 trillion yen.