BOJ marks 1st unrealized loss in 17 yrs on bond holdings in FY 2022

The Bank of Japan said Monday it had an unrealized loss of 157.1 billion yen ($1.1 billion) on its record-high government bond holdings in fiscal 2022 for the first such loss in 17 years, after it ramped up bond-buying to keep yields low despite a global trend of monetary tightening.

The BOJ’s total assets for the previous fiscal year through March fell for the first time in 11 years, down 0.2 percent, to 735.12 trillion yen, hurt by a drop in loans extended to financial institutions as part of its efforts to boost funds to cope with the COVID-19 pandemic.

Bond-buying has been a key pillar of ...