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2025-12-12 17:47:01
[Bond Market Turmoil: Historic Sell-Off Forces Japan's Ministry of Finance to Reduce Bond Issuance] ⑴ As yields on ultra-long-term government bonds soared to record highs, primary dealers in the Japanese bond market formally called on the Ministry of Finance on Friday to reduce the planned issuance of ultra-long-term government bonds for the next fiscal year. ⑵ This request was made during a consultation meeting held by the Ministry of Finance regarding the annual Japanese government bond issuance plan starting next April, demonstrating strong dissatisfaction among key market participants with the current supply pressure. ⑶ One participant proposed a concrete plan, suggesting a reduction of at least 100 billion yen in monthly issuance of 30-year Japanese government bonds. ⑷ Currently, the Ministry of Finance issues 700 billion yen in 30-year government bonds monthly; adopting this suggestion would mean a significant reduction in issuance. ⑸ The final bond issuance plan for the next fiscal year will be finalized along with the year-end budget. The Ministry of Finance plans to convene another meeting with primary dealers later on Friday to finalize measures to ensure smooth sales of government bonds.
