| • | Date and Time: Monday, March 24, 2025, 10:30 a.m. – 12:10 p.m. |
| • | Location: Special Conference Room 3 at the Ministry of Finance |
1. Reopening Rules of Fixed-Rate Coupon-Bearing Bonds in FY2025 DEBT MANAGEMENT OFFICE’S PROPOSAL • Regarding 5-Year Bonds, it was proposed to issue four issues in FY2025 unless the gap between the coupon rate of the issue with the same maturity and the market interest rate on the auction day was more than 0.10%. • Regarding Japan Climate Transition Bonds, it was proposed to issue them as newly issued bonds(two issues per year). • Regarding 10-Year Bonds, it was proposed to issue four issues in FY2025 unless the gap between the coupon rate of the issue with the same maturity and the market interest rate on the auction day was more than 0.30%. • 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. OPINIONS FROM THE PARTICIPANTS • The participants supported the proposal on the reopening rule of 5-Year Bonds. A few participants stated that the MOF would be flexible in responding to future communications with the market, although the proposal was not so different from the current system and therefore would not have a negative impact. • Regarding the reopening rule of Japan Climate Transition Bonds, many participants supported the proposal from the perspective of prioritizing investor demand for new bonds. Meanwhile, a few participants expressed concerns about a decrease in liquidity. • The participants supported the proposals on the reopening rules of 10-Year, 20-Year and 30-Year Bonds. • Most of the participants supported the proposal on the reopening rule of 40-Year Bonds, although some of the participants stated that it would be desirable to issue multiple issues of 40-Year Bonds. 2. Auction Methods of Fixed-Rate Coupon-Bearing Bonds in FY2025 DEBT MANAGEMENT OFFICE’S PROPOSAL • Regarding 40-Year Bonds and Japan Climate Transition Bonds, it was proposed to maintain the current practice of Dutch-style-yield-competitive auction. • Regarding 2-Year, 5-Year, 10-Year, 20-Year, and 30-Year Bonds, it was proposed to maintain the current practice of price-competitive auction in the multiple price method. OPINIONS FROM THE PARTICIPANTS • The participants supported all the proposals. A few participants stated that the auction method for 40-Year Bonds should aim to adopt the multiple price method in the future. 3. Issuance Size and Buy-Back Amount of Inflation-Indexed Bonds in the April-June 2025 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. 4. Issuance Size of Liquidity Enhancement Auctions in the April-June 2025 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), 650 billion yen for JGBs with remaining maturities of 5 to 15.5 years monthly, and 450 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. |