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Mid-Year Interviews in FY2026
OPINIONS FROM THE PARTICIPANTS
・Regarding super-long-term bonds, there were views that while the demand from life insurance companies has been declining compared to the past due to the progress that they have made to meet their regulatory requirements, the supply-demand conditions have improved, supported by the impact of measures such as reductions of issuance size since the previous fiscal year.
In this context, although some off-the-run issues have shown somewhat unstable movements, there were also comments that overall supply-demand conditions remain generally firm.
・Regarding long-term bonds, many participants stated that investors are on the sidelines because of the uncertainty about the future, including the difficulty of predicting the Bank of Japan’s terminal rate and concerns about fiscal management.
On the other hand, many participants also expressed the view that supply-demand conditions are not structurally weak to the extent which would require a change in the issuance plan.
・Regarding short-term and medium-term bonds, many participants expressed the view that since there is a clear trend among banks and other institutions to shorten maturities, and demand is expected to remain stable going forward, they regard current levels as stable.
・There were comments that from the perspective of predictiability, the size of issuance should not be increased or decreased in response to temporary changes in supply-demand conditions.
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