BREAKING: The Bank of Japan's total assets fell -$98 billion in Q1 2026, to $4.14 trillion, the lowest since Q2 2020. Since the Q1 2024 peak, the BoJ has reduced its balance sheet by -$590 billion, or -12.6%. Japanese government bond holdings fell -$84 billion in Q1, the largest quarterly decline since QT began. This brings the JGB portfolio down to $3.32 trillion, in-line with Q3 2020 levels. Since the 2023 peak, JGB holdings have dropped -$384 billion, or -10.4%. The BoJ also began offloading equity ETFs and J-REITs in January, a significant shift after years of aggressive purchases to support markets. The Bank of Japan is adding to bond market pressure.(The Kobeissi Letter)