Bank of Japan Speeds ETF Selloff, Cutting Unwind Timeline to 43 Years
Updated
Updated · Reuters · Oct 30
Bank of Japan Speeds ETF Selloff, Cutting Unwind Timeline to 43 Years
3 articles · Updated · Reuters · Oct 30
Summary
The BOJ kept rates unchanged but accelerated sales of its Japanese ETF holdings, shrinking the estimated exit period to 43 years from 112 years.
That faster unwind targets a stock portfolio built through years of market support, with the central bank having spent 37.19 trillion yen on ETFs through March 2024.
Governor Kazuo Ueda is still pushing policy normalization after September's rate hike to 1.25%—a 31-year high—even as some former BOJ officials warn the timing is awkward in fragile markets.
Japanese stocks were already under pressure, with the Nikkei down as much as 3%, while investors piled into bonds and pushed the 10-year JGB yield down 5.5 basis points to 2.780%.