MNI BRIEF: BOJ Posts Unrealised JGB Losses Of JPY28.6 Trln

The Bank of Japan reported unrealised losses of JPY28.6 trillion on its JGB holdings for fiscal 2024, which ended March 31, sharply higher than the JPY9.4 trillion loss recorded the previous year, reflecting the impact of rising interest rates.

The BOJ raised its policy rate to 0.25% in July 2024 from around zero, and again to 0.50% in January 2025.

The bank publishes both the book and market value of its JGB holdings twice a year alongside its financial results. For FY2024, the book value stood at JPY575.9 trillion, while the market value was JPY547.3 trillion, resulting in the JPY28.6 trillion in unrealised losses.

Despite the increase, the losses will not affect BOJ earnings, as the accounting treatment assumes the JGBs will be held to maturity.

The balance of exchange-traded funds (ETFs) held by the BOJ remained unchanged from a year earlier at JPY37.19 trillion, as the bank refrained from further purchases. However, unrealised ETF profits declined to JPY32.87 trillion from JPY37.31 trillion a year ago.

The BOJ posted a net income of JPY2.26 trillion in FY2024, slightly down from JPY2.29 trillion the previous year.

Total assets stood at JPY729.8 trillion at the end of March, down from JPY756.4 trillion a year earlier. The outstanding balance of long-term JGBs declined to JPY574.2 trillion from JPY585.6 trillion over the same period.