BOJ holds 43.5% of all outstanding Japanese government debt


  • BOJ's massive government bond holdings indicate there is little room for further stimulus. 
  • The central bank may have a hard time weakening Yen in future. 

The Bank of Japan (BOJ) now holds a staggering 43.5% of all outstanding Japanese government debt, Jeroen Blokland,  Portfolio Manager for the Robeco Multi-Asset funds, Robeco ONE and Robeco Pension Return Portfolio, tweeted on Thursday. 

The central bank unleashed a massive quantitative easing program in April 2013. Under the QE plan, the Bank of Japan (BoJ) vowed to buy ¥7 trillion of government bonds each month using electronically created money.

The QE program is in its sixth year. Even so, the BOJ remains miles away from its 2% inflation target. 

If anything, the QE program seems to have distorted markets. Also, with BOJ owning more than 43% of government debt, there is limited scope for further monetary stimulus. 

Put simply, the BOJ is going to have a tough time battling bullish pressures around the JPY during the next round of risk aversion

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD hovers around one-month low amid cautious markets

EUR/USD has been edging lower toward 1.2050, consolidating Friday's losses as the market mood is mixed. Upbeat Chinese GDP and US stimulus are cheering markets while Italy's political crisis and the depressing coronavirus picture is weighing on sentiment. 

EUR/USD News

GBP/USD fails to recover despite accelerated UK vaccine campaign

GBP/USD remains below 1.36, shrugging off the expansion of Britain's vaccination campaign. Post-Brexit talks on financial services continue while tension is mounting ahead of US President-elect Biden's inauguration. 

GBP/USD News

Gold struggles to capitalize on intraday bounce, up little around $1930-32

Gold struggled to capitalize on its goodish intraday bounce of nearly $40 and was last seen trading with modest gains, around the $1830-32 region.

Gold news

Forex Today: Dollar holds onto gains, shrugging off upbeat Chinese GDP, vaccine news eyed

Markets are mixed on "Blue Monday" with the dollar clinging to gains related to risk aversion, while upbeat Chinese growth partially offsets the gloom.Tension is mounting ahead of President-elect Biden's inauguration.

Read more

US Dollar Index: Immediately to the upside comes 91.00

DXY extends the march north and already trades at shouting distance from the 91.00 barrier, or new 2021 highs.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures