<\/p>\n
A banking giant in Japan has announced a plan to liquidate $63 billion in US and European treasuries in an attempt to mitigate a massive amount of unrealized losses on its balance sheet.<\/p>\n
Japan\u2019s Norinchukin Bank, which has $681.6 billion in total assets, plans to complete the sell-off of sovereign bonds by March of next year, reports<\/a> Nikkei Asia.<\/p>\n The sales will bring the bank\u2019s net loss for the current fiscal year to 1.5 trillion yen, which is triple the bank\u2019s previous estimate.<\/p>\n \u201c[The bank\u2019s CEO Kazuto Oku] said the bank \u2018acknowledged the need to drastically change its management\u2019 to reduce unrealized losses on its bonds, which totaled roughly 2.2 trillion yen as of the end of March. <\/em><\/p>\n Oku explained the bank\u2019s intention to shift its investments, saying, \u2018We will reduce [sovereign] interest rate risk and diversify into assets that take on corporate and individual credit risk.’\u201d<\/em><\/p>\n As of March, the banking giant had a total of 23 trillion yen, or $144 billion, in foreign bonds on its balance sheet.<\/p>\n Japan is the biggest foreign holder of U.S. Treasury securities, with the nation\u2019s banks, pension funds and other institutions holding<\/a> $1.87 trillion as of March 2024.<\/p>\n A few weeks ago, Japan\u2019s Ministry of Finance said<\/a> it stepped in to prop up the yen after it plunged to a 34-year-low against the US dollar.<\/p>\n Macro strategist Shekhar Hari Kumar tells<\/a> Reuters that he doubts Japan will create much sell-side pressure on U.S. Treasuries \u2013 unless the country\u2019s currency struggles get significantly worse.<\/p>\n \u201cJapanese selling (of dollars) is not going to create big pressure in the Treasury market now.<\/em><\/p>\n But in the unlikely event that MoF gets into a protracted fight with FX markets, we might expect some knock on effects on Treasury market yields, especially the 2-5 year segment with the potential of spillovers to the rest of the curve.\u201d<\/em><\/p>\n Don’t Miss a Beat \u2013 Subscribe<\/a> to get email alerts delivered directly to your inbox <\/span><\/em>  <\/p>\n Generated Image: Midjourney<\/em><\/span><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":" A banking giant in Japan has announced a plan to liquidate $63 billion in US and European treasuries in an attempt to mitigate a massive amount of unrealized losses on its balance sheet. Japan\u2019s Norinchukin Bank, which has $681.6 billion in total assets, plans to complete the sell-off of sovereign bonds by March of next […]<\/p>\n","protected":false},"author":2,"featured_media":328762,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,255,250,252,247,253,249,256,254],"class_list":["post-328760","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-gta","tag-looks-rare","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/328760","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=328760"}],"version-history":[{"count":3,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/328760\/revisions"}],"predecessor-version":[{"id":328764,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/328760\/revisions\/328764"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/328762"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=328760"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=328760"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=328760"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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