If you thought the Federal Reserve’s Treasury holdings were audacious, take a look at the Bank of Japan’s (BoJ) bond holdings.
Due to the central bank’s enormous quantitative easing program, the BoJ’s government bond holdings are nearly the size of the world’s third-largest economy.
The institution’s bond holdings climbed 3.4 percent from a year ago to $4.5 trillion as of March. This is about 90 percent the size of the entire Japanese economy. With the government unveiling multiple stimulus and relief rounds, the BoJ could soon add to its immense holdings.
That’s not all.
The BoJ is the top shareholder on the Nikkei stock average. But its earnings on its exchange-traded funds (ETFs) narrowed to their lowest levels since 2011.
Big trouble in little Tokyo?
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