Latest news with #JapanFinance
Bloomberg
43 minutes ago
- Business
- Bloomberg
Japan Set to Cut Super-Long Bond Issuance by More Than Expected
Japan is planning to cut the issuance of super-long bonds this year by more than earlier reported, after record levels of volatility in super-long yields in recent months stoked market concerns. The Finance Ministry proposed reducing the issuance of 20-, 30- and 40-year bonds by a total of ¥3.2 trillion ($22 billion) through the end of March 2026, according to a plan presented by the ministry during a meeting with primary dealers on Friday.
Bloomberg
12 hours ago
- Business
- Bloomberg
Japan to Sound Out Market Players on Tweaks to Bond Issuance
Japan's Finance Ministry will seek feedback from market players later Friday over its planned reductions to super-long bond issuance as it takes steps to quell market turbulence. The ministry will hold a meeting with primary dealers at 4 p.m. in Tokyo to discuss recent market developments and its issuance plans. A draft of its revised bond plan seen by Bloomberg showed that authorities will propose cutting issuance of 20-, 30- and 40-year bonds by ¥100 billion ($690 million) each per auction through March 2026. To offset the reduction in sales of longer maturities, the ministry is looking to increase issuance of 2-year and shorter-dated debt, the plan showed.
CNA
05-06-2025
- Business
- CNA
Japan's 30-year bonds rise as weak auction adds to pressure to curtail issuance
TOKYO : Japan's 30-year government bond prices rose after the weakest auction of the securities in more than a year added to pressure on the Ministry of Finance to reduce supply of super-long notes. The bid-to-cover ratio, a measure of demand that gauges the number of bids against the amount of securities on offer, fell to 2.921, the worst since December 2023, and was down from 3.074 at the prior sale in May. The auction followed a weak outcome of the 40-year bond sale last week, and was a gauge for demand in so-called super-long bonds, whose yields hit record highs in May after heavy sell-offs. "Investors bought the bonds as they thought the 30-year bonds had become cheap," said Miki Den, a senior Japan rate strategist at SMBC Nikko Securities. "But fundamentally, the sentiment was supported by the expectations that the finance ministry may cut the issuance of super-long bonds," he said. The finance ministry could reduce the sale amounts as early as July, after hearing opinions from primary dealers at a meeting scheduled later this month, strategists said. Expectations for the move rose after Reuters reported last week the Ministry of Finance is considering reducing its sales of super-long bonds. The 30-year JGB yield trimmed losses soon after the auction, but fell as much as 7 basis points to 2.875 per cent. It was last down 6 bps at 2.885 per cent. Bond yields move inversely to prices. Keisuke Tsuruta, a senior fixed income strategist at Mitsubishi UFJ Morgan Stanley Securities, said some investors probably rushed to buy back the securities to cover their short positions. "They needed to do so before bond prices rise further," he said. Yields across tenors fell, with the 10-year JGB yield slipping 4 bps to 1.46 per cent. The five-year yield fell 3.5 bps to 1.005 per cent. The 20-year JGB yield fell 7 bps to 2.355 per cent.
