Unrealized gains and losses on JGBs held by the Bank of Japan fell to minus 874.9 billion yen at the end of September. This is the first unrealized loss since the introduction of a different level of monetary easing in April 2013. 22nd yearFirst half financial resultswas announced on the 28th.
Under its yield curve control policy, the Bank of Japan has continued to purchase low-yield, high-priced government bonds in order to keep long-term interest rates at regarding 0%. Along with the recent rise in overseas interest rates, Japan’s long-term interest rate has also risen to around 0.25%, the de facto upper limit. Yields on ultra-long-term bonds, which are not subject to inducement, have also risen sharply.
For accounting purposes, the BOJ’s holdings of JGBs are valued using the amortized cost method, and changes in the market price are not reflected in profit or loss. Controversy over sexuality can increase. It is the first time since the end of March 2006, when the interest rate rose due to the termination of the quantitative easing policy, that the holdings of government bonds have an unrealized loss.
| book value | market price | Valuation profit/loss | |
|---|---|---|---|
| end of September 21 | 528 trillion 29.5 billion yen | 537.902 trillion yen | 9,872.5 billion yen |
| end of March 22 | 526,173.6 billion yen | 530,547.1 billion yen | 4,373.4 billion yen |
| end of September 22 | 545.5211 trillion yen | 544.6462 trillion yen | ▲874.9 billion yen |
Exchange-traded funds (ETFs) had valuation gains of 11.1151 trillion yen at the end of September, down from 14.6854 trillion yen at the end of March. Retained earnings, which is the final profit, increased to 1,592.4 billion yen from 1,052.9 billion yen in the same period of the previous year due to the depreciation of the yen.
other points
- Total assets were 685.7902 trillion yen, compared with 724.0579 trillion yen in the same period last year.
- The balance of government bonds held was 545,521.1 billion yen, compared with 528,029.5 billion yen in the same period of the previous year.
- Ordinary profit was 3,005.9 billion yen, compared with 1,306.1 billion yen in the same period last year.
- Interest income from government bonds was 600.3 billion yen, compared with 552.5 billion yen in the same period last year.
- Equity ratio was 9.90% and 9.29% at the end of March
Bank of Japan Head Office
Photographer: Noriko Hayashi/Bloomberg
(Updated with more details and clarification)