BoJ cuts $590 billion since 2024 peak, bond holdings see largest drop since QT began. Japan is adding to bond market pressure.

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BREAKING: The Bank of Japan’s total assets fell -$98 billion in Q1 2026, to $4.14 trillion, the lowest since Q2 2020.

Since the Q1 2024 peak, the BoJ has reduced its balance sheet by -$590 billion, or -12.6%.

Japanese government bond holdings fell -$84 billion in Q1, the largest quarterly decline since QT began.

This brings the JGB portfolio down to $3.32 trillion, in-line with Q3 2020 levels.

Since the 2023 peak, JGB holdings have dropped -$384 billion, or -10.4%.

The BoJ also began offloading equity ETFs and J-REITs in January, a significant shift after years of aggressive purchases to support markets.

The Bank of Japan is adding to bond market pressure.