Key Points of the 118th Meeting of JGB Market Special Participants

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Date and Time: Thursday, March 26, 2026, 4:00 p.m. – 4:55 p.m.

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Location:Special Conference Room 1208 at the Central Common Government Offices No.4

1. Reopening Rules of Coupon-Bearing Bonds in FY2026
DEBT MANAGEMENT OFFICE’S PROPOSAL

・Regarding 5-year-bonds, it was proposed to maintain four issues in FY2026 unless the gap between the coupon rate of the issue with the same maturity and the market interest rate on the auction day is more than 0.10%.

・Regarding 10-year-bonds, it was proposed to maintain four issues in FY2026 unless the gap between the coupon rate of the issue with the same maturity and the market interest rate on the auction day is more than 0.30%.

・Regarding 20-year and 30-year-bonds, it was proposed to maintain the current practice of "reopening in principle", namely reopening them one and two months after the original issuance, leading to four issues per year (redemption date is renewed every three months).

・Regarding 40-year-bonds and Inflation-Indexed Bonds, it was proposed to maintain the current practice of "reopening in principle", namely reopening them throughout a fiscal year.

・Regarding Japan Climate Transition Bonds, it was proposed to maintain the current practice issuing as newly issued bonds (two issues per year).

OPINIONS FROM THE PARTICIPANTS
・Most of the participants supported the proposal about the reopening rule of each bonds, while some participants expressed the view that there should be more reopen issues for 5-year-bonds and 30-year-bonds in order to improve the market liquidity.

2. Auction Methods of Coupon-Bearing Bonds in FY2026
DEBT MANAGEMENT OFFICE’S PROPOSAL
・Regarding 2-year, 5-year, 10-year, 20-year, and 30-year-bonds, it was proposed to maintain the current practice of price-competitive auction in the multiple price method.

・Regarding 40-year-bonds and Japan Climate Transition Bonds, it was proposed to maintain the current practice of Dutch-style-yield-competitive auction.

・Regarding Inflation-Index Bonds, it was proposed to maintain the current practice to conduct Dutch-style-price-competitive auction.

OPINIONS FROM THE PARTICIPANTS
・Most of the participants supported the proposal about the auction methods of each bonds, while some participants expressed their expectations that the auction method of 40-year bonds and Japan Climate Transition Bonds should be changed into price-competitive auction in the multiple price method, as they were concerned that the gap between the market price and the issue price may widen due to the decrease in those issuance sizes.

3. Issuance Size and Buy-back Amount of Inflation-Indexed Bonds in the April-June 2026 Quarter

DEBT MANAGEMENT OFFICE’S PROPOSAL

・It was proposed to remain an issuance size per auction (conducted once a quarter) at 250 billion yen. It was also proposed to decrease the buy-back amount from 20 billion yen to 15 billion yen per auction, and to change the frequency of buy-back auction from monthly to twice a quarter.

OPINIONS FROM THE PARTICIPANTS

・Considering that the BEI (break-even inflation rate) has recently been rising and investor base has gradually been expanding, most of the participants supported the proposal.

4. Issuance Size of Liquidity Enhancement Auctions in the April-June 2026 Quarter

DEBT MANAGEMENT OFFICE'S PROPOSAL
・For the liquidity enhancement auctions for the JGBs with remaining maturities of 1 to 5 years (issued in odd-numbered months), to maintain the issuance size unchanged at 700 billion yen.
For the liquidity enhancement auctions for the JGBs with remaining maturities of 5 to 15.5 years (issued every month), to change the range of maturities to 5 to 11 years (issued every month), and to maintain the issuance size unchanged at 650 billion yen.

For the liquidity enhancement auctions for the JGBs with remaining maturities of 15.5 to 39 years (issued in even-numbered months), to change the range of maturities to 11 to 39 years (issued in even-numbered months), maintain the issuance size unchanged at 250 billion yen.

OPINIONS FROM THE PARTICIPANTS

・Most of the participants supported the proposal to change the range of remaining maturities. However, some participants expected to maintain the current range in order to meet with demand for issues in the super-long-term zone (i.e. remaining maturities of 15.5 to 39 years).

・In addition, most of the participants agreed to the proposal of issuance size of each zone, while there were some opinions that it would be desirable to decrease the issuance size of JGBs with remaining maturities of 5 to 11 years and increase issuance size of JGBs with remaining maturities of 1 to 5 years and / or 11 to 39 years in light of the current supply-demand situation and the change in the scope of maturities.

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