| • | Date and Time: Wednesday, March 13, 2024, 10:30 a.m. – 11:55 a.m. |
| • | Location: Special Conference Room 3 at the Ministry of Finance |
1. Reopening Rules and Auction Methods of Fixed-Rate Coupon-Bearing Bonds in FY2024 DEBT MANAGEMENT OFFICE’S PROPOSAL • Regarding 5-Year Bonds, it was proposed to maintain the current practice of reopening them one and two months after the original issuance, if the redemption date and the coupon rate of a new issue are the same as those of the original issue (redemption date is renewed every three months). • Regarding 10-Year Bonds, it was proposed to maintain the current practice of reopening them one and two months after the original issuance, leading to four issues per year (redemption date is renewed every three months), unless a different coupon rate is desirable due to a wide interest rate fluctuation (approximately over ±0.30% from the original coupon rate). • Regarding 20-Year and 30-Year Bonds, it was proposed to maintain the current practice of “reopening in principle”, namely reopening them one and two months after the original issuance, leading to four issues per year (redemption date is renewed every three months). • Regarding 40-Year Bonds, it was proposed to maintain the current practice of “reopening in principle”, namely reopening them throughout a fiscal year (five reopening issuances every two months after the original issuance with redemption date being renewed once a year) and to conduct Dutch-style-yield-competitive auction. OPINIONS FROM THE PARTICIPANTS • The participants supported the proposals on the reopening rules and the auction methods of 5-Year, 10-Year, 20-Year, and 30-Year Bonds. • Most of the participants supported the proposals on the reopening rule and the auction method of 40-Year Bonds, while only a few participants commented that it would be desirable to reopen them less frequently, leading to multiple issues per year, and to issue them every month, which was conducive to their nature as an investment product, and that the auctions should be conducted in the multiple price method in the future. 2. Issuance Size and Buy-Back Amount of Inflation-Indexed Bonds in the April-June 2024 quarter and others DEBT MANAGEMENT OFFICE’S PROPOSAL • It was proposed to set an issuance size per auction (conducted once a quarter) at 250 billion yen and to conduct a Buy-back Auction of 20 billion yen each month, as is currently the case. • It was proposed to maintain the current practice of “reopening in principle”, namely reopening Inflation-Indexed Bonds throughout a fiscal year (three reopening issuances every three months after the original issuance with redemption date being renewed once a year), and to conduct Dutch-style-price-competitive auction. OPINIONS FROM THE PARTICIPANTS • The participants supported all the proposals. 3. Issuance Size of Liquidity Enhancement Auctions in the April-June 2024 quarter DEBT MANAGEMENT OFFICE’S PROPOSAL • Tap issuances of 500 billion yen for JGBs with remaining maturities of 1 to 5 years in odd-numbered months (May), 600 billion yen for JGBs with remaining maturities of 5 to 15.5 years monthly, and 500 billion yen for JGBs with remaining maturities of 15.5 to 39 years in even-numbered months (April and June) were proposed. OPINIONS FROM THE PARTICIPANTS • The participants supported the proposal. |