| • | Date and Time: Wednesday, September 24, 2025, 4:00 p.m. – 4:50 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 2025 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 Auctions of 20 billion yen each month, as is currently the case. OPINIONS FROM THE PARTICIPANTS • While the breakeven inflation rate has recently been stable and investor base is gradually expanding, considering the continued low liquidity etc, all participants supported the proposal to maintain the current treatment. 2. Issuance Size of Liquidity Enhancement Auctions in the October-December 2025 Quarter DEBT MANAGEMENT OFFICE’S PROPOSAL • For JGBs with remaining maturities of 1 to 5 years (issued in odd-numbered months), to increase the issuance size by 100 billion yen from the current level to 700 billion yen. For JGBs with remaining maturities of 5 to 15.5 years (issued monthly), to maintain the issuance size unchanged at 650 billion yen. For JGBs with remaining maturities of 15.5 to 39 years (issued in even-numbered months), to decrease the issuance size by 100 billion yen from the current level to 250 billion yen. OPINIONS FROM THE PARTICIPANTS • A number of participants expected the issuance size of JGBs with remaining maturities of 15.5 to 39 years to be decreased, considering soft supply-demand situation for off-the-run issues. While some suggested reduction amounts other than the proposal would be appropriate, most participants supported the proposal to decrease by 100 billion yen. • Most participants supported the proposal to offset the decrease in the issuance size of JGBs with remaining maturities of 15.5 to 39 years by the increase in the issuance size of JGBs with remaining maturities of 1 to 5 years, given the current market conditions. OTHER • Regarding buyback of the off-the-run securities in the super long-term tenors, the MOF explained that it has several issues, such as the impact on market autonomy by the government purchasing JGBs while the Bank of Japan reducing its JGB purchases, how to position it in the government debt management policy, and others, and stated that no specific consideration has been taken for the time being. A few participants expressed their expectation for the MOF to consider this option in the medium to long term, while showing understanding to the explanation. |