| • | Date and Time: Wednesday, September 27, 2023, 4:00 p.m. – 5:00 p.m. |
| • | Location: Special Conference Room 3 at the Ministry of Finance |
1. Issuance Size and Buy-Back Amount of Inflation-Indexed Bonds in the October-December 2023 quarter 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. OPINIONS FROM THE PARTICIPANTS • All of the participants supported the proposal, preferring to maintain the current level of both the issuance size and the Buy-back amount, because the circumstances surrounding the Inflation-Indexed Bonds market had not changed significantly since the last meeting and the market was still in the process of expanding its investor base. 2. Issuance Size of Liquidity Enhancement Auctions in the October-December 2023 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 (November), 500 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 (October and December) were proposed. OPINIONS FROM THE PARTICIPANTS • Most of the participants supported the proposal, stating that there was no need to change the issuance sizes since the balance between supply and demand in each zone remained favorable. On the other hand, only a few of them requested the debt management office to increase the issuance size of JGBs with remaining maturities of 5-15.5 years, of which the supply-demand balance had been very tight and decrease the issuance size of JGBs with remaining maturities of 1-5 years instead. 3. Notification from the Debt Management Office The debt management office notified the participants of the following items: • Regarding the GX Economy Transition Bonds, the Japanese government will formulate a framework for the Japan Climate Transition Bonds that outlines the use of the proceeds and other contents and obtain second party opinions on the framework from external reviewers. Subsequently, we will issue the Japan Climate Transition Bonds within this fiscal year, which will be financial instruments different from normal JGBs. • We plan to issue them through auctions the same as normal JGBs and will prepare to announce the details of the initial auctions by the end of the year. • We will deliberate and determine the specific issuance amount of the bonds through March 2024 including exploring a possible use of a deferred issuance in the accounting adjustment term, while considering the status of the budget execution and the JGB market environment. |