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Capital Markets

BOJ's government bond lending surges as market dries up

Financial institutions turn to the biggest holder of JGBs

TOKYO -- The Bank of Japan is rapidly increasing its lending of government bonds to financial institutions facing difficulty acquiring securities as the central bank's own massive asset purchases deplete the supply.

The central bank lent just over 3.9 trillion ($34.2 billion) in Japanese government bonds through its securities lending facility in February, an unprecedented scale over 13 times the level seen a year before. 

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