Anticipating rate hike, MUFG offloaded ¥4trn of Japan government bonds
Lender reduces holdings to lowest in over a decade
Mitsubishi UFJ Financial Group reduced its holdings of Japanese government bonds (JGBs) by ¥3.9 trillion ($26.7 billion) during the three months ending June 30, in anticipation of further interest rate hikes from the Bank of Japan.
The 18.3% fall brought MUFG’s holdings of available-for-sale (AFS) JGB down to ¥17.5 trillion, the lowest level in at least a decade. Despite the reduction, the bank’s unrealised losses on the bonds increased by 28.3% to ¥90.8 billion.
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