MNI BRIEF: Japan H’hold Assets Hit Record At End-June

The balance of financial assets held by Japanese households stood at a record high of JPY2,115 trillion at the end of June, up 4.6% y/y and higher for the 13th straight quarterly rise, preliminary fund circulation data released by the Bank of Japan on Wednesday showed.

Cash and deposit balances at the end of June, which accounted for 52.8% of the total financial assets, stood at a record high of JPY1,117 trillion, up 1.4% from a year earlier.

While the high cash and deposit balances has alleviated the impact of soaring consumer prices, it also illustrates household aversion to investing in financial products.

Government bonds and Treasury bills held by the Bank of Japan stood at JPY584 trillion at the end of June, up 7.6% y/y and for the fifth straight rise, and accounting for 47.1% of total government debt, the single largest share and down from 47.3% at the end of March.

The balance of government bonds and Treasury bills held by non-Japanese totaled JPY181 trillion at the end of June, up 4.2% y/y, and accounting for 14.6% of total government bonds, up from 14.5% at the end of March.