Japan's foreign reserves fall for fifth month to about $1.18 trillion
In short
Japan's foreign exchange reserves stood at about $1.18 trillion at the end of September, down $29.128 billion from the end of August and a fifth consecutive monthly decline, according to data released by Japan's Ministry of Finance on October 7. The ministry said a rise in US long-term interest rates cut the market value of the US Treasury bonds and other bonds Japan holds, with the 10-year US Treasury yield at 5.287% at end-September against 4.751% a month earlier.
Read the full story 1 min read
Japan's foreign exchange reserves fell for a fifth consecutive month, to about $1.18 trillion at the end of September, down $29.128 billion from the end of August, according to data released by Japan's Ministry of Finance on October 7. All three documents carry the same headline figures, and 36Kr and Jiemian attribute them to Xinhua's report of the ministry data. [ 1 , 2 , 3 ]
The Ministry of Finance said a rise in US long-term interest rates pushed down the market value of the US Treasury bonds and other bonds Japan holds, and named that as one of the main reasons for the decline, Yicai reported. At the end of September the US 10-year Treasury yield was 5.287%, above the 4.751% recorded at the end of August. [ 1 ]
Securities assets in the reserves totalled about $821.691 billion at the end of September, $17.868 billion less than a month earlier, according to the same data. The documents do not break down the rest of the change in total reserves, and none of them gives a forecast or any ministry comment on what happens next. [ 1 ]
The reports are short and rest on the same official release: Yicai carries the explanation, yield and securities figures alongside the headline number, while 36Kr and Jiemian publish the reserve total and the length of the decline without further detail. [ 1 , 2 , 3 ]
Why it matters
The figures are official Japanese data and speak to how global bond market moves feed into the value of the country's reserves. The documents give no indication of any policy response or of how the ministry expects reserves to move next.
Key facts
- Japan's foreign exchange reserves were about $1.18 trillion at the end of September 2026, according to Japan's Ministry of Finance. [ 1 , 2 , 3 ]
- That was $29.128 billion less than at the end of August and the fifth straight monthly decline. [ 1 , 2 , 3 ]
- The ministry said the decline was mainly due in part to lower market value of US Treasuries and other bonds Japan holds as US long-term rates rose. [ 1 ]
- The US 10-year Treasury yield was 5.287% at the end of September, up from 4.751% at the end of August. [ 1 ]
- Securities assets in the reserves were about $821.691 billion at the end of September, down $17.868 billion from a month earlier. [ 1 ]
Confirmed by several sources
Still unclear
- What accounted for the remainder of the $29.128 billion decline beyond the $17.868 billion fall in securities assets. Only one document gives the securities breakdown, and the documents do not explain the other components of the change.
- Whether reserves will keep falling, and what the ministry expects next. No document carries a forecast or forward-looking comment.
- The Ministry of Finance said a rise in US long-term interest rates reduced the market value of the US Treasuries and other bonds held in the reserves, contributing to the fall. Reported by a single source so far