| • | Date and Time: Wednesday, September 25, 2024, 4:00 p.m. – 4:55 p.m. |
| • | Location: Special Conference Room 3 at the Ministry of Finance |
1. Issuance Size and Buy-Back Amount of Inflation-Indexed Bonds in the October-December 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 break even inflation rate was volatile during the market turmoil at the beginning of August, and although its level has dropped then and has not recovered, most of the participants supported the proposal, saying that it is appropriate to maintain the current treatment in light of supply and demand, liquidity, and other factors. Some participants suggested that the MOF should consider increasing the amount of Buy-Back and other measures, paying close attention to the possibility that investors may become less willing to buy. 2. Issuance Size of Liquidity Enhancement Auctions in the October-December 2024 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 (November), 650 billion yen for JGBs with remaining maturities of 5 to 15.5 years monthly, and 400 billion yen for JGBs with remaining maturities of 15.5 to 39 years in even-numbered months (October and December) were proposed, as is currently the case. OPINIONS FROM THE PARTICIPANTS • Most of the participants supported the proposal, saying that it was appropriate to maintain the current treatment as there had been no significant changes since the last meeting. A small number of participants expressed their preference to increase the issuance amount for the remaining 15.5-39 year maturities, for which there is strong current demand, and instead reduce the issuance amount for the remaining 5-15.5 year maturities, returning to the initial planned issuance amount. 3. Issuance of Japan Climate Transition Bonds from October 2024 • Regarding the issuance of Japan Climate Transition Bonds (hereafter referred to as the Bonds in this section) through auctions from October 2024, it was confirmed that all participants have no objection to proceed with the plan announced in March 2024 i.e. the reopening issuance of 10-year Bonds in October and 5-year Bonds in January 2025, with an offering amount of approximately 350 billion yen each. |