TONAR explained

Tokyo Overnight Average Rate (TONA rate or TONAR) or Japanese Yen Uncollateralized Overnight Call Rate (Japanese: 無担保コールO/N物レート) is an unsecured interbank overnight interest rate and reference rate for Japanese yen.[1] [2] [3] Mutan rate and TONA rate are the same things.

History

Japanese yen uncollateralized overnight call market started in July 1985.[4]

Since December 28, 2016, the Bank of Japan has recommended the TONA rate as the preferred Japanese yen risk-free reference rate.[5] [6]

TONA rate is recommended as a replacement for Japanese yen LIBOR, which was phased out at the end of 2021, and Euroyen TIBOR, which will be terminated at the end of 2024.[3] [7] [8] [9]

Target rates

Bank of Japan target rates[10] ! Dates !! Target rates
1998.09 - 1999.02 0.25%
1999.02 - 2000.08 Initially 0.15%, then 0%.
2000.08 - 2001.02 0.25%
2001.02 - 2001.03 0.15%
2001.03 - 2006.03 None (0%)
2006.03 - 2006.07 0.00%
2006.07 - 2007.02 0.25%
2007.02 - 2008.10 0.50%
2008.11 - 2008.12 0.30%
2008.12 - 2010.10 0.10%
2010.10 - 2013.04 0.00% - 0.10%
2013.04 - 2024.03 None (0%)
2024.03 - 0.00% - 0.10%[11]
2024.08 - 0.25%[12]

TONA Compounded Benchmarks

TONA Averages
  • TONA Averages are derived from the daily compounded TONA rate. The terms are 30day, 90days, and 180 days.[13]
    TONA Index
  • Assets when 100 was invested in TONA on June 14, 2017.[13]

    External links

    Notes and References

    1. https://www.boj.or.jp/en/finsys/libor/index.htm/ Interest Rate Benchmark Reform (Preparedness for the Discontinuation of LIBOR) : 日本銀行 Bank of Japan
    2. Web site: LIBOR: Where Things Now Stand Insight Baker McKenzie . www.bakermckenzie.com . dead . https://web.archive.org/web/20171203005455/http://www.bakermckenzie.com/en/insight/publications/2017/11/libor-where-things-now-stand . 2017-12-03.
    3. News: EXPLAINER-What is SOFR? The new U.S. Libor alternative. Reuters. 3 April 2018.
    4. https://www.stat-search.boj.or.jp/ssi/mtshtml/fm02_m_1_en.html BOJ's Main Time-series Statistics
    5. https://www.boj.or.jp/en/paym/market/sg/rfr1612c.pdf Report on the Identification of a Japanese Yen Risk-Free Rate - Study Group on Risk-Free Reference Rates - Bank of Japan
    6. Web site: Libor Reform – What You Need to Know. 26 September 2017.
    7. News: Libor Enters 'Final Chapter' as Global Regulators Set End Dates . 10 March 2021 . Bloomberg.com . 5 March 2021 . en.
    8. https://www.zenginkyo.or.jp/en/libor/ LIBOR Transition | Japanese Bankers Association
    9. https://www.jbatibor.or.jp/english/reform/ JBA TIBOR Reform | JBA TIBOR
    10. https://www.sangiin.go.jp/japanese/annai/chousa/rippou_chousa/backnumber/2019pdf/20191202095.pdf 日本銀行による追加緩和の行方 ― 金融政策の現状と課題 ― 立法と調査 2019.12 No.418 参議院常任委員会調査室・特別調査室
    11. https://www.boj.or.jp/en/mopo/mpmdeci/mpr_2024/k240319a.pdf Changes in the Monetary Policy Framework - Bank of Japan
    12. https://www.boj.or.jp/en/mopo/mpmdeci/mpr_2024/k240731a.pdf Change in the Guideline for Money Market Operations and Decision on the Plan for the Reduction of the Purchase Amount of Japanese Government Bonds - Bank of Japan
    13. https://moneyworld.jp/page/tona.html TONA Averages & TONA Index | QUICK

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