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Key Points of the 119th Meeting of JGB Market Special Participants


• Date and Time: Friday, June 26, 2026, 4:00 p.m. – 4:45 p.m.
• Location: Special Conference Room 1208 at the Central Common Government Offices No.4

1. Mid-Year Interviews in FY2026
OPINIONS FROM THE PARTICIPANTS
・Regarding super-long-term bonds, many participants stated that the current supply-demand conditions have improved due to the impact of measures such as reductions of issuance size since the previous fiscal year.


・Regarding long-term bonds, many participants stated that although there is some easing in current supply-demand conditions compared with other zones, underlying demand remains strong, and the supply-demand balance is not structurally weak.


・Regarding short-term and medium-term bonds, many participants stated that stable demand from domestic investors is expected.


・Regarding JGB Issuance Plan, there were comments that from the perspective of predictability, the size of issuance should not be increased or decreased in response to temporary changes in supply-demand conditions.

2. Issuance Size and Buy-back Amount of Inflation-Indexed Bonds in the July-September 2026 Quarter

OPINIONS FROM THE PARTICIPANTS

・There were some expectations for the increase of issuance size, the restarting of Non-Price Competitive Auction II, and the increase of frequency of buy-buck auction, considering that the BEI(break-even inflation rate) has recently been keeping 2%+ as oil price has been rising due to the tension in the Middle East, and investor base has been gradually expanding. However, many participants supported the idea to maintain the current treatment.


3. Issuance Size of Liquidity Enhancement Auctions in the July-September 2026 Quarter

OPINIONS FROM THE PARTICIPANTS

・There were some expectations for the increase of the issuance size of JGBs with remaining maturities of 11 to 39 years or that of 1 to 5 years, where the supply-demand balance is tight for some issues; the decrease of the issuance size of JGBs with remaining maturities of 5 to 11 years where the supply-demand balance is relatively loose; while others expected to maintain the issuance size of JGBs with remaining maturities of 11 to 39 years given what measures MOF has taken for the past year. However, many participants supported the idea to maintain the current treatment.
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