MNI BRIEF: Japan Household Financial Assets Hit Record High

The balance of financial assets held by Japanese households stood at a record high of JPY2,043 trillion at the end of March, up 1.1% y/y and the 12th straight quarterly rise, preliminary fund circulation data released by the Bank of Japan on Tuesday showed.

The balance of cash and deposits held by Japanese households, 54.2% of the total financial assets, at the end of March stood at a record high on a year-end basis of JPY1,107 trillion, up 1.7% from a year earlier, illustrating a continued reluctance from buying financial assets. The high cash and deposit balance alleviates the impact of soaring consumer inflation caused by the rise in resource prices and the weak yen, and will support consumer spending.

Government bonds and Treasury bills held by the BOJ stood at JPY582 trillion at the end of March, up 9.6% y/y for the fourth straight rise, accounting for 47.3% of total government debt, the single largest share and up from 46.3% at the end of December. Government bonds excluding Treasury bills held by the BOJ stood at JPY576 trillion, up 11.7% and accounting for 53.3% at the end of March, up from 52.0% at the end of December.