BOJ releases a report on Foreign central bank holdings.

  • Holdings rose 8.6% to ¥47.8tn end of 2012
  • Bonds account for ¥45.7 tn of the total.
  • Holdings increased by 26% in 2011

Takahiro Sekido, a strategist at Bank of Tokyo Mitsubishi says that yen denominated assets are going to increase as CB’s spread risk.

It’s possible they will increase their holdings if the euro-debt crisis re-ignites

The figures show that the yen is still widely held as a safe haven currency and that it may also attract further flows from investors as the economy picks up.