Assets held by Japanese households hit a record 2,115 trillion yen ($14 trillion) at the end of June, marking a 4.6 percent rise from a year earlier, due to higher stock prices and increased cash holdings, the Bank of Japan said Wednesday.
Stock holdings surged 26.0 percent to a record 268 trillion yen while investment trusts rose 15.9 percent to 100 trillion yen, also the highest since 2005. Cash and deposits, which accounted for over half of total household assets, were up 1.4 percent to a record 1,117 trillion yen.
The BOJ held 580.49 trillion yen worth of Japanese government bonds, or 53.24 percent of those outstanding, as the central bank ramped up buying to keep borrowing costs extremely low.
Still, the figure dipped 0.1 percentage point from three months earlier, the first drop in six quarters, according to the BOJ. Short-term bonds are not included.
Under its yield cap program, the BOJ had sought to prevent the yield on 10-year Japanese government bonds from rising above 0.5 percent. Its commitment to ultralow rates, in stark contrast to its peers in the United States and Europe, has resulted in a weak yen.
In July, the central bank decided to allow the key yield to rise toward 1.0 percent, preparing itself for upside risks to its inflation outlook that would also lead to higher long-term yields. Despite the change, it remains committed to monetary easing.
