| • | Date and Time: Monday, June 24, 2024, 4:00 p.m. – 5:00 p.m. |
| • | Location: Special Conference Room 4 at the Central Common Government Offices No.4 |
1. Issuance Size and Buy-Back Amount of Inflation-Indexed Bonds in the July-September 2024 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 • The participants supported the proposal, saying that an issuance size and a Buy-back amount should be maintained at the current levels, as the balance between supply and demand in the secondary market remained in equilibrium, although the break-even-inflation rate had been steady at around 150 bps recently. 2. Issuance Size of Liquidity Enhancement Auctions in the July-September 2024 Quarter DEBT MANAGEMENT OFFICE’S PROPOSAL • It was proposed to set tap issuance amount of JGBs with remaining maturities of 1 to 5 years in odd-numbered months (July and September) at 500 billion yen as it is. • Tap issuances of 600 billion yen for JGBs with remaining maturities of 5 to 15.5 years in July and 650 billion yen in August and September (an increase of 50 billion yen from the current amount); and 400 billion yen for JGBs with remaining maturities of 15.5 to 39 years in even-numbered months (August), a reduction of 100 billion yen from the current amount, were also proposed. OPINIONS FROM THE PARTICIPANTS • Most of the participants supported the proposal stating that the issuance size of JGBs with remaining maturities of 15.5 to 39 years in August should be decreased by 100 billion yen and the issuance amount of JGBs with remaining maturities of 5 to 15.5 years in August and September should be expanded by 50 billion yen. This was because the current supply-demand balance of off-the-run issues in the 15.5-39-year maturity zone was not favorable, and because the amount outstanding of JGBs in the 5-15.5-year maturity zone in circulation – they would become cheapest-to-deliver issues in future – had been low and their liquidity was limited due to the Bank of Japan’s outright purchases. |