Japan's Central Bank Reduces Holdings of Government Bonds

Japan's central bank has decreased its holdings of government bonds, according to the latest financial circulation statistics. As of the end of December last year, the proportion of Japanese government bonds held by the central bank fell to 43.1% from 44.2% at the end of September. According to Jin10, this decline reflects a reduction in the central bank's bond-buying operations and a decrease in market value due to soaring bond yields. Tsuyoshi Ueno, an economist at NLI Research Institute, noted that although the Bank of Japan still holds nearly half of the outstanding long-term government bonds and remains a dominant market force, its influence is gradually waning.