BOJ's Japanese gov't bond holdings top bank note issue for 1st time.
The Bank of Japan said Tuesday its holdings of long-term Japanese government bonds topped the amount of outstanding BOJ notes for the first time due mainly to bond-buying as a part of its easy money policy.
As of Friday, the central bank's government bond holdings came to 80.97 trillion yen, surpassing the amount of outstanding BOJ notes at 80.79 trillion yen, the bank said. Of the bond holdings, 14.50 trillion yen are purchases under the credit-easing program.
The bank has a self-imposed rule to keep its Japanese government bonds holdings below the outstanding issue of BOJ notes so that it will not be seen to be buying government bonds to cover fiscal deficits.
But the bank takes the position that the rule does not apply to bond purchases for monetary easing.
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|Publication:||Japan Weekly Monitor|
|Date:||Aug 20, 2012|
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