After BRICS, Japan is now dumping U.S. bonds and mitigating the losses it incurred from adverse interest rate bets. The latest data shows Japan has offloaded $63 billion worth of U.S. and European sovereign bonds by March 2024. The U.S. bonds sale represents nearly one-sixth of the Central Bank of Japan’s portfolio.
Kazuto Oku, CEO of the Japan’s Norinchukin Bank spoke about the U.S. bonds sale to a local news outlet. He confirmed that the bank will reduce interest-rate risk bets to safeguard its interests as the country is in financial turmoil. The amount will now be diversified into corporate assets and not in U.S. and European sovereign bonds. The development is similar to that of BRICS member China, which has dumped nearly $73 billion in U.S. bonds.
We will “diversify into assets that take on corporate and individual credit risk,” said Oku to Bloomberg. Japan misjudged how long interest rates would stay elevated but a rise in foreign-currency funding wiped out returns from U.S. bonds bought when the yields were lower. Read here to know how much worth of U.S. bonds the BRICS alliance has dumped in the last two years.
This article originally appeared on Watcher Guru.
Energy officials are downplaying it. Analysts say “it’s too early.” But behind closed doors, contingency…
A year of aggressive tariff swings, legal reversals, and rising economic pressure has done more…
Wall Street is celebrating. The headlines say “peace,” the markets surge, and the talking heads…
You’re being told this is just another Middle East conflict and rising tensions in Asia—but…
While headlines focus on war and inflation, central banks around the world are quietly stacking…
The headlines say rising grocery prices are an unfortunate side effect of war. That’s not…
This website uses cookies.
Read More