Japanese regional banks just hit a brutal milestone. Their unrealized losses on domestic bond holdings crashed to a record -¥3.3 trillion during Q2 of fiscal 2025, which wrapped up on September 30th. That's some serious red ink piling up on balance sheets across the country's smaller banking institutions. The bond market bloodbath continues taking its toll on these regional players, and this latest figure shows just how deep the pain goes. Worth watching how this plays out for Japan's broader financial stability.