Bank of Japan's government bond holdings exceed 50% of total

Central bank's debt holdings hit record high in defense of its yield cap

20220627 Bank of Japan

The Bank of Japan headquarters in Tokyo: Analysts forecast the central bank's holdings of JGBs will eventually exceed 60% of the total issued. (Photo by Akira Kodaka) 

Nikkei staff writers

TOKYO -- The share of Japanese government bonds held by the Bank of Japan has topped 50%, hitting a record high as the central bank has accelerated its government debt purchases to hold down long-term interest rates.

The BOJ is buying up the majority of the JGBs, creating distortions in the bond market, including an inverted yield curve where the interest rate on some short-term bonds is higher than that for long bonds.

Sponsored Content

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