The Bank of Japan has reduced its monthly purchases of Japanese Government Bonds (JGBs) to ¥2.9 trillion for the January-March 2026 quarter, marking the lowest level since the quantitative and qualitative easing program began in April 2013.
The central bank's total balance sheet has contracted by approximately ¥94.3 trillion, or 12.6%, from its 2024 peak. Specifically, JGB holdings have decreased by more than 10% from recent highs.
Following a plan established in July 2024, the BoJ aimed to cut monthly purchases by roughly ¥400 billion per quarter until the January-March 2026 period, with a further reduction of ¥200 billion per quarter thereafter. The goal is to reach monthly purchases of around ¥2 trillion by the January-March 2027 quarter.
Beyond bonds, the BoJ is selling equity ETFs valued at about ¥330 billion annually and J-REITs worth approximately ¥5 billion per year.
In late March 2026, long-term JGB yields reached 2.35-2.40%, the highest level recorded since February 1999.