BOJ’s unrealized losses on JGBs to exceed 10tn yen by year-end

The Nikkei Asian Review carried an article on Monday, quoting the Board of Audit of Japan expressing their concern over BOJ’s swelling unrealized losses on the Japanese government bonds (JGBs).

The daily reports, “The bank's unrealized losses on JGBs are likely to surpass 10 trillion yen ($92.9 billion) by the end of the year, as the bank buys JGBs at a much higher price than face value on the back of falling long-term interest rates and rising bond prices.”

The Board of Audit of Japan, which audits government expenditures, noted the BOJ should try to keep its financial position healthy.

Meanwhile, 10-yr JGB yield rises to 0%, BOJ target under new framework, for the first time since September amid continued Trump-led fixed income sell off.