Japanese household assets at 2nd-highest 2,007 tril. yen as of June

Assets held by Japanese households stood at 2,007 trillion yen ($14 trillion) at the end of June, up 1.3 percent from a year earlier and the second-highest level ever, highlighting the slow recovery in spending amid the COVID-19 pandemic, Bank of Japan data showed Tuesday.

Total household assets, including cash and deposits as well as securities, were close to the record level of 2,014 trillion yen at the end of last year. Cash and deposits, which accounted for more than half of the total, increased 2.8 percent to a record 1,102 trillion yen.

Assets in the form of securities fell 3.3 percent from a year earlier to 199 trillion yen, reflecting lower share prices, according to the data.

The BOJ has been maintaining an ultralow rate policy to support the economy hit by the COVID-19 pandemic.

Under its yield curve control program, the central bank has set short-term interest rates at minus 0.1 percent while guiding 10-year Japanese government bond yields around zero percent through purchases.

As a result, the BOJ held 44.3 percent of outstanding government bonds, with its holdings at 542 trillion yen, up 0.5 percent. Those held by foreign investors, meanwhile, rose 2.7 percent to 167 trillion yen, accounting for 13.6 percent of the total, the data showed.

© Kyodo News