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.
