| • | Date and Time: Wednesday, November 27, 2024, 10:00 a.m. – 11:25 a.m. |
| • | Location: Special Conference Room 3 at the Ministry of Finance |
Current Trades on JGB Investment and Opinions on the Formulation of JGB Issuance Plan for FY2025 OPINIONS FROM THE PARTICIPANTS • As well as the opinions of participants at the Meeting of JGB Market Special Participants, a dominant opinion was that it would be appropriate to reduce the issuance amount of super long-term bonds and to increase the issuance amount of short-term, medium-term and long-term bonds, based on the current market trends and the demand of investors. • Regarding 40-Year and 30-Year Bonds, a dominant opinion was that it was appropriate to reduce the issuance size because the demand was declining due to the progress to meet the regulatory requirements of life insurance companies. As for 20-Year Bonds, while some participants commented that a reduction would be appropriate considering the shift in demand to long-term and medium-term bonds by depository institutions, others insisted on maintaining the current issuance amount, as the demand of life insurance companies is expected to be continued. • In the long-term and medium-term bonds, there was a general consensus that it is possible to increase the issuance size of these bonds, with an expectation for the additional investment demand from depository institutions. • A dominant opinion was that it is possible to increase the issuance size of short-term bonds, particularly for 3-month T-bills, based on the strong demand. • Regarding the Liquidity Enhancement Auctions, there were views that if the issuance amount of 30-Year and 40-Year Bonds were to be reduced, the issuance of JGBs with the remaining maturity of 15.5 to 39 years could be increased. |