Japan to raise government bond (JGB) sales to individuals by 500 bn yen to 5.1 trl yen

Japan to chop scheduled JGB gross sales to market by 500 bln yen from preliminary plan to 171.8 trln yen in FY2025/2026 – draft revised plan

• Japan to chop gross sales of 20- and 30-yr bonds by 900 bln yen every to 11.1 trln yen and eight.7 trln yen, respectively, in FY2025/2026
• Japan to extend gross sales of 2-yr JGBs, one-year, six-month treasury low cost payments by 600 bln yen every
• Japan to extend JGB gross sales to households by 500 bln yen to five.1 trln yen

Japan’s authorities plans to chop gross sales of super-long bonds by about 10% from the unique plan in a uncommon revision to its bond programme for the present fiscal yr, trimming general bond issuance because of this, a draft doc seen by Reuters confirmed.

• transfer goals to appease market issues over supply-demand imbalances, after weak demand at current auctions and a surge in super-long yields to report excessive ranges final month
• additionally follows the Financial institution of Japan’s choice this week to decelerate the tempo of bond purchases reductions from subsequent fiscal yr, signalling its choice to maneuver cautiously in eradicating remnants of its huge, decade-long stimulus

The revised issuance plan shall be offered to main sellers for dialogue at a gathering on Friday.

Data through Reuters report.