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Finance

Banks raising guard against possible JGB crash

Bank of Tokyo-Mitsubishi UFJ quit its role as a primary dealer of Japanese government bonds.

TOKYO -- Bank of Tokyo-Mitsubishi UFJ formally quit its role as a primary dealer of Japanese government bonds this July 15, a move that  reflects the lender's heightened sense of risk over a possible crash in the JGB market.

The Mitsubishi UFJ Financial Group unit ran simulations gauging how fluctuating yields would affect its capital base. The results were not pretty.

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