BoJ Unleashes Record-Setting Sell-Off of Japanese Government Bonds

The Bank of Japan has started selling off its Japanese Government Bond (JGB) holdings at an unprecedented pace, marking a significant shift in its monetary policy strategy.

In what is being described as the fastest pace in history, the BoJ's monthly JGB purchases have dropped to 2.9 trillion yen for the January-March 2026 quarter, down from recent highs.

This move is part of a structured taper schedule laid out by the central bank in July 2024, which calls for cutting monthly purchases by approximately 400 billion yen per quarter through the January-March 2026 period. The target is to reduce monthly purchases to around 2 trillion yen by the January-March 2027 quarter.

The BoJ's move has caused long-term JGB yields to rise, reaching 2.35-2.40% in late March 2026, the highest level since February 1999. This has significant implications for global fixed income portfolios and Japanese investors, who hold a large share of foreign bonds.