MNI BRIEF: BOJ Posts Unrealised JGB Losses of JPY157.1 Bln

The Bank of Japan said Monday it had unrealised losses of JPY157.1 billion on its Japanese government bond holdings at the end of March, the first losses since fiscal 2005, when it posted losses of JPY243.5 billion.

The losses reversed from profits of JPY4.37 trillion a year earlier.

The bank publishes the book value and actual value of its JGBs twice a year, along with its financial results. The FY2022 results showed a JPY581.7206 trillion book value and actual value of JPY581.5635 trillion. The decline in the JGB market value will not cause the Bank's earnings to deteriorate, as the accounting treatment assumes they will be held to maturity.

The balance of exchange-traded funds held by the BOJ rose to JPY37.12 trillion at the end of March from JPY36.63 trillion a year earlier, the BOJ said, recording an unrealised profit of JPY16.04 trillion, up JPY14.69 trillion at the end of March 2022. The BOJ posted a record net income of JPY2.09 trillion over FY2022, up from a net income of JPY1.32 trillion the prior year.

Assets held by the BOJ at the end of March totaled JPY735.1 trillion, down 0.2% from last year. The outstanding balance of long-term JGBs held by the BOJ at the end of March was JPY576.2 trillion, up 12.7% from from last year.