Japan’s banks could suffer $1.1 trillion bond loss if BoJ pivots

Citing the latest data from the Japanese Bankers Association, Bloomberg reported on Tuesday, the country’s banks could suffer losses on their government bonds to the tune of $1.1 trillion should the Bank of Japan (BoJ) loosen its grip on 10-year JGB yields.

“Japan’s financial regulator is examining how vulnerable lenders would be to a sudden slump in government bonds should the nation’s central bank pivot away from its ultra-loose monetary policy in future,” per Bloomberg.

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