ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
Bonds

Japan bond delivery failures highest since global financial crisis

BOJ purchases squeeze liquidity even as outstanding balance tops $7.6tn

Throughout January, many investors speculated that the BOJ would move to shift away from its ultraloose monetary policy.   © Reuters

TOKYO -- A growing number of sellers are failing to deliver promised Japanese government bonds to buyers as aggressive purchasing by the Bank of Japan dries up liquidity in the market.

Failures affected 5.08 trillion yen ($38.6 billion) of JGBs in 1,247 incidents this January, according to the BOJ -- the most since September 2008, when Lehman Brothers collapsed.

Sponsored Content

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

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

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