ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
The Bank of Japan

Japan's central bank isn't sweating 'hidden' bond losses

Positive yields gradually heal wound from negative-rate experiment

MAKOTO NAKANISHI, Nikkei staff writer | Japan

TOKYO -- The Bank of Japan's unrealized losses on negative-yielding government bonds have exceeded 10 trillion yen ($88.1 billion), but officials say there is nothing to fear, now that long-term interest rates are back above zero.

The central bank's negative interest rate scheme, announced in January 2016 amid worries about overseas economic deceleration, drove yields on Japanese government bonds of wide-ranging maturities below zero last year. Purchasing a negative-yielding bond means paying more than face value, implying losses down the line for buyers who hold to maturity.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more