BOJ could suffer 28 tril. yen bond loss if yields rise 1%: deputy

Politics Economy

The Bank of Japan could incur an unrealized loss of 28.6 trillion yen ($211 billion) on its holdings of Japanese government bonds if yields rise by 1 percent, a deputy governor said Friday. The estimate made by Deputy Governor Masayoshi Amamiya at a parliamentary session highlights the difficulty that the central bank would face if it decides to exit years of bold monetary easing that has expanded its balance sheet. An appraisal loss means the market value of government bonds held by the BOJ is below their book value. A 5-percent rise in interest rates would mean a 108.1 trillion yen loss. Bon...

Kyodo News

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