Archive · 19 Jun 2025
Japan to Reduce Issuance of Super-Long Bonds Starting in July
The Japanese government is planning to sell fewer super-long bonds, starting in July.
This means they will sell less of the bonds that take a long time to pay back, like 20, 30, and 40-year bonds.
They might sell more bonds that pay back sooner, like 2-year bonds, to balance things out.
This is happening because there's been some worry about the government's finances and big changes in how bonds are being bought and sold.
The government will discuss the plan with key financial players soon, and experts are watching to see how it affects the market.
Japan's finance ministry plans to trim super-long bond issuance from July.
The proposal involves reducing 20-, 30-, and 40-year bond issuance by ¥100 billion per auction through March 2026.
To offset, the ministry may increase issuance of 2-year and other shorter-dated debts.
Total issuance of 40-year bonds will decrease by ¥500 billion this fiscal year.
The ministry will present the proposal to primary dealers at a meeting on Friday.
- Who
- Japan's finance ministry.
- What
- Japan is planning to reduce the issuance of super-long bonds.
- When
- Starting from July.
- Where
- Japan
- Why
- To address concerns over long-term fiscal health and bond market volatility.
Analysts
MOF
Yield Expectations
Analysts
Expect stabilization but not a return to previous yield levels.
MOF
N/A
- Bond Types Affected
- 20-, 30-, and 40-year bonds
- Reduction per Auction
- ¥100 billion
- Reduction End Date
- March 2026
- 40-year bonds reduction
- ¥500 billion
- Total Market Issuance
- ¥171.8 trillion (proposed)
- Meeting with dealers
- Friday