Japan to consider tweaking bond issuance plan, sources say
TOKYO, May 27 (Reuters) - Japan's Ministry of Finance (MOF) will consider tweaking the composition of its bond programme for the current fiscal year, which could involve trimming the issuance of super-long bonds, two sources told Reuters on Tuesday.
The MOF will make a decision after holding discussions with market participants around mid- to late-June, the sources who had direct knowledge of the plan said.
The plan comes amid recent rises in super-long bond yields to record levels, due largely to dwindling demand from traditional buyers like life insurers.
If the MOF were to reduce issuance of 20-, 30- or 40-year Japanese government bonds (JGB), it would likely increase issuance of shorter-dated debt instead, the sources said.
As such, the total planned size of JGB issuance for the current fiscal year that ends March 2026 will remain unchanged from 172.3 trillion yen ($1.21 trillion), they said.
($1 = 142.4000 yen)
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