Markdowns on Japan Post Bank’s domestic bonds widen 50%
Unrealised losses on JGBs-dominated book compounded by out-of-the-money foreign-bond hedges
Japan Post Bank reported a ¥463.4 billion ($3.2 billion) loss in the value of its mark-to-market domestic bonds during the three months to June 30, widening its unrealised losses by 50%, as yields surged following a shift in the Bank of Japan’s monetary policy.
The markdowns on the bank’s available-for-sale (AFS) Japanese government bonds (JGBs), which make up the majority of its domestic securities investment, reached ¥1.32 trillion at the end of the quarter, up from ¥881.5 billion three months
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