BOJ BALANCE SHEET SHRINKS 17% FROM PEAK

The Bank of Japan's balance sheet fell to ¥625 trillion, about $3.95 trillion, at the end of September, 17% below the ¥755.7 trillion peak it hit in March 2024. The central bank kept trimming its bond portfolio too, with government bond holdings down to ¥504 trillion in the same quarter, from ¥639.6 trillion in total assets back in June. Years into unwinding pandemic-era stimulus, the BOJ is quietly pulling back a cushion that has long kept $USDJPY funding cheap.