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Trends in the Money Market in Japan*1 -- Results of the Tokyo Money Market Survey (August 2020) --

  1. *1This is an English translation of Japanese original released on October 30, 2020.

December 18, 2020
Financial Markets Department
Bank of Japan

Overview of the Tokyo Money Market Survey


The Financial Markets Department of the Bank of Japan (the Bank) has conducted the Tokyo Money Market Survey since 2008 to understand developments in the Japanese money market. Initially, this series of surveys was conducted every other year. However, to observe market trends more precisely, the Bank decided to conduct the survey annually beginning with the 2013 survey. In August 2020, the 11th survey in the series was carried out (the survey was conducted as of the end of July 2020).

As with the previous surveys, this survey covers eligible counterparties in the Bank's market operations, as well as other major participants in the money market. The number of respondents in the survey was 328 (with a response rate of 100 percent).

The Bank intends to capture comprehensively and from various angles the situations and structural changes in the money market, utilizing the results of this survey as well as the results of the Bond Market Survey. The Bank will continue to enhance dialogue with market participants by taking advantage of the Meeting on Market Operations and the Bond Market Group Meeting to actively support the relevant parties in their efforts to enhance Japanese financial markets, including the money market. The Bank intends to contribute significantly to such endeavors in its capacity as Japan's central bank.


The amounts outstanding in the money market increased from the levels of the previous year on both the cash borrowing side and the cash lending side.

This was because (1) the newly implemented "Special Funds-Supplying Operations to Facilitate Financing in Response to the Novel Coronavirus (COVID-19)" were actively used and moves to conduct yen fund transactions with overseas counterparties became widespread, mainly among foreign banks on the cash borrowing side and (2) there was an increase in purchases of treasury discount bills (T-Bills) for the purposes of arbitrage trading and providing collateral amid rises in the yield on T-Bills temporarily exceeding the short-term policy interest rate of minus 0.1 percent.

With respect to the functioning of the money market (as of the end of July 2020), around 90 percent of all respondents answered that it remained "mostly unchanged." However, with regard to the period when the state of emergency was in place, around 20 percent of respondents indicated that market functioning had "declined"

The Bank intends to continue to closely monitor the developments in the money market through day-to-day monitoring activities, the implementation of the Tokyo Money Market Survey, and dialogue with market participants.


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Financial Markets Department, Bank of Japan
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Market Infrastructure Group, Market Infrastructure Division, Financial Markets Department

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