A detailed analytical report published by the Bank of Japan on August 4, 2025, examining transaction trends and recent characteristic changes in Japans repo market.
Japans repo market has been on an increasing trend since the Lehman Shock, with particularly accelerated growth in recent years. The analysis utilizes long-term time series data from the Tokyo Short-term Money Market Survey and individual data from FSB repo statistics, providing detailed organization of trading motivations and transaction characteristics of major market participants.
Particularly noteworthy is the behavior of non-residents, who significantly increased bond procurement in specific maturities after 2022, and recently have been increasing both bond procurement and bond investment across a broad range of maturities on a matched-book basis. This change indicates a clear shift in trading motivations, confirming that various market participants have adapted their trading motivations in response to changes in domestic monetary policy and market environment.
The repo market constitutes a major component of the short-term money market and maintains close relationships with bond markets, playing an important role in financial markets. This report was prepared by Hiroki Asamatsu and Tsukasa Asada of the Financial Markets Department, representing a comprehensive market analysis utilizing detailed information on individual transactions.
The article reveals through quantitative data the reality that while Japans repo market has been increasing its overall transaction volume, market participants have been adaptively changing their trading motivations in response to environmental changes.