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Key Points of the 106th Meeting of JGB Market Special Participants

Date and Time: Monday, October 23, 2023, 4:50 p.m. – 5:20 p.m.
Location: Special Conference Room 3 at the Ministry of Finance

1. JGB Issuance Plan for the Supplementary Budget for FY2023

• It would be better to increase the issuance size of T-Bills if the amount of market issuance for FY 2023 would be augmented in response to the supplementary budget. It is difficult to increase the issuance of long-duration bonds because the outlook for the Bank of Japan’s monetary policy has been uncertain.

• It would be easier to increase the issuance amount of 6-month T-Bills than 1-year T-Bills in the case of increasing the issuance size of T-Bills.

• It is possible to increase the issuance size of 6-month T-Bills even if the issuance frequency is kept at once a month. However, if the issuance size gets larger, it is recommended to take some measures to reduce the impact on the market, for example, by issuing them twice a month.

• The size of tap issuance of JGBs with remaining maturities of 5 to 15.5 years in Liquidity Enhancement Auctions could be expanded in addition to T-Bills because there is a demand to repurchase off-the-run JGBs within the maturities.