| • | Date and Time: Thursday, November 27, 2025, 4:00 p.m. – 5:00 p.m. |
| • | Location:Special Conference Room 1208 at the Central Common Government Offices No.4 |
Current Trends on JGB Investment and Opinions on the Formulation of JGB Issuance Plan for FY2026
OPINIONS FROM THE PARTICIPANTS ・Most participants stated that it would be appropriate to reduce the issuance size of super-long-term bonds, and there is room for increasing the issuance size of short-term, medium-term and long-term bonds, based on the current market trends and the demand of investors.
・Regarding super-long-term bonds, many participants suggested reducing the issuance size because the demand from life insurance companies has been declining due to the progress that they have made to meet their regulatory requirements. Particularly for 30-Year bond, there were some opinions that the current demand is mainly from the replacement with off-the-run issues, and supply-demand situation is getting weak if we look at the entire curve.
・Regarding long-term and medium-term bonds, there were views that while the terminal rate remains unclear and the demand is partly depending on the outlook of increasing interest rate in the future, it is possible to increase the issuance size of these bonds with an expectation for the investment demand from banks etc,.
・Regarding short-term bonds, it is possible to increase the issuance size, considering the tendency of tight supply-demand situation with demand from foreign investors and collateral needs.
・There were comments that it is appropriate to maintain or reduce the current issuance amount of Inflation-Indexed Bonds, and that of Japan Climate Transition Bonds.
・Some participants expressed positive views that they expect the MOF to review JGB Issuance Plan every six months. |