The Bank of Japan’s ETF gains are skyrocketing: The market value of the BoJ’s ETF holdings jumped +18.5% YoY in 6 months, to a record ¥83.2 trillion. This comes as paper gains on the holdings rose to a record ¥46.0 trillion, driven by the stock market rally. Unrealized ETF profits in 6 months have already surpassed full-year unrealized gains from fiscal 2023 and 2024. Additionally, the BoJ’s revenues from ETF dividends surged +18.7% YoY, to ¥1.5 trillion. In September, the central bank announced it would sell its ETFs at a pace of ¥330 billion per year, a rate that would take over 100 years to liquidate all holdings. Meanwhile, unrealized losses on its bond portfolio spiked +350% YoY, to ¥32.8 trillion, as bond yields continued to surge. Japan’s monetary policy is moving in all directions.(The Kobeissi Letter)