Japanese gov’t to absorb any BOJ losses on QE

The Nikkei reports that the Japanese government plans to allow the BOJ to skip its payments to the national treasury if it incurs losses on the assets purchases as part of its latest round of quantitative ease.

This is a sign that the BOJ will have the staying power to keep on buying assets without having to concern itself with P&L like us mere mortals.

No doubt this story helped spur part of the rally to 81.98 highs in USD/JPY. We trade now at 81.83.