Will the BOJ Debt Mountain Erode in Time?
Through its unprecedented monetary-stimulus program, the Bank of Japan has acquired over a third of the nation’s total marketable government debt. By comparison, the Federal Reserve holds less than 20 percent of Treasuries, even after quantitative-easing efforts to support the economy, research by BMO Capital Markets pointed out Monday. The BOJ’s swollen coffers highlight the challenge for the world’s third-largest economy: There’s diminishing scope for the central bank to keep buying bonds, according to BMO. Bank of Tokyo-Mitsubishi European Head of Global Markets Research Derek Halpenny discusses with Bloomberg's Anna Edwards and Manus Cranny on "Countdown."