Latest news with #superlongbonds
NHK
2 days ago
- Business
- NHK
Japan ponders JGB restructuring amid super-long bond slump
The Finance Ministry is considering ways to deal with a slump in Japan's super-long bonds, or those with maturities of more than 10 years. It's planning a meeting of financial institutions this month to discuss a possible review of their maturities. The yields on super-long bonds have been surging recently. The yield on the 30-year debt temporarily rose to a record 3.185 percent on May 21. The 40-year yield soared to an all-time high of 3.675 percent the following day. When long-term government bonds are sold, their prices drop and yields go up. The May 20 auction for 20-year bonds saw the weakest demand since 2012. A separate sale of 40-year bonds last Wednesday drew the lowest bid-to-cover ratio since July 2024. The ministry is studying whether to trim issuance of super-long bonds and focus more on shorter-term debt. Market sources say investors are paying greater attention to fiscal policies as US President Donald Trump aims to reduce taxes. They are also looking at Japan's fiscal condition, since debate over a consumption tax cut between the ruling and the opposition parties in the Diet is heating up.
CNA
27-05-2025
- Business
- CNA
Exclusive-Japan to consider trimming super-long bond issuance, sources say
TOKYO :Japan will consider trimming issuance of super-long bonds in the wake of recent sharp rises in yields for the notes, two sources told Reuters on Tuesday, as policymakers seek to soothe market concerns over worsening government finances. The Ministry of Finance (MOF) will consider tweaking the composition of its bond programme for the current fiscal year, which could involve cuts to its super-long bond issuance, said the sources who had direct knowledge of the plan. The MOF will make a decision after holding discussions with market participants around mid- to late-June, the sources 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. The yield on the 30-year Japanese government bond (JGB) fell 12.5 basis points to 2.91 per cent after the report, while the benchmark 10-year yield dropped 5 points to 1.455 per cent. "We've been arguing that something had to give to correct the supply-demand imbalance in long-end JGBs. The market is thinking it will be the MOF," Societe Generale said in a note. If the MOF were to reduce issuance of 20-, 30- or 40-year JGBs, 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)
Yahoo
27-05-2025
- Business
- Yahoo
Exclusive-Japan to consider trimming super-long bond issuance, sources say
By Takaya Yamaguchi TOKYO (Reuters) -Japan will consider trimming issuance of super-long bonds in the wake of recent sharp rises in yields for the notes, two sources told Reuters on Tuesday, as policymakers seek to soothe market concerns over worsening government finances. The Ministry of Finance (MOF) will consider tweaking the composition of its bond programme for the current fiscal year, which could involve cuts to its super-long bond issuance, said the sources who had direct knowledge of the plan. The MOF will make a decision after holding discussions with market participants around mid- to late-June, the sources 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. The yield on the 30-year Japanese government bond (JGB) fell 12.5 basis points to 2.91% after the report, while the benchmark 10-year yield dropped 5 points to 1.455%. "We've been arguing that something had to give to correct the supply-demand imbalance in long-end JGBs. The market is thinking it will be the MOF," Societe Generale said in a note. If the MOF were to reduce issuance of 20-, 30- or 40-year JGBs, 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) Sign in to access your portfolio
Reuters
27-05-2025
- Business
- Reuters
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)
CNA
27-05-2025
- Business
- CNA
Japan to consider tweaking bond issuance plan, sources say
TOKYO :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)
