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BOJ to suffer $24 billion loss if yields rise 1 percentage point: deputy governor
March 7, 2013 / 8:47 AM / 5 years ago

BOJ to suffer $24 billion loss if yields rise 1 percentage point: deputy governor

TOKYO (Reuters) - The Bank of Japan would suffer 2.3 trillion yen ($24.6 billion) of unrealized losses if long-term rates rise by one percentage point, Deputy Governor Kiyohiko Nishimura said in parliament on Thursday.

A security officer stands guard at an entrance of Bank of Japan headquarters in Tokyo February 25, 2013. REUTERS/Yuya Shino

Japanese government yields have hit multi-year lows recently on monetary easing expectations, but there are some concerns of yields reversing course if the government continues issuing debt and neglects fiscal discipline.

The BOJ is a major holder of government debt, which it buys to support its super easy monetary policy.

($1 = 93.5200 Japanese yen)

Reporting by Kaori Kaneko; Editing by Shinichi Saoshiro

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