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Bank of Japan cuts government bond holdings by a record 47.8 trillion yen

9/12/2026

Japan's central bank shed more of its bond stockpile in a single year than it ever has before.

The Bank of Japan's holdings of Japanese Government Bonds (debt the national government issues to fund its spending, commonly abbreviated as JGBs) fell by 47.8 trillion yen compared with the same month a year earlier.

July's reading is the largest annual decline the Bank of Japan has recorded in its bond holdings.

Central banks accumulate government bonds by buying them in the open market, a tool that pushes money into the financial system and holds borrowing costs down.