BoJ's record Q3 JGB holdings cast doubt on unwinding QE

According to the Bank of Japan (BoJ) data released on Wednesday, the central bank’s holdings of government debt rose to a record in July-September under its quantitative easing programme, Reuters reports.

The BOJ held a record 445 trillion yen ($3.94 trillion) in government debt at the end of September, up 7.6 percent from the same period a year earlier.

Markets fret that the record high JGB holdings could deepen concerns its policy framework is unsustainable. Some economists would argue that the Q3 record will make it more difficult for the BOJ to unwind its QE policy.