Latest news with #superlongbonds
Bloomberg
10 hours 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.
Yahoo
2 days ago
- Business
- Yahoo
Exclusive-Japan plans to cut super-long bond sales by 10% to ease market concerns, draft shows
By Takaya Yamaguchi TOKYO (Reuters) -Japan's government plans to cut sales of super-long bonds by about 10% from the original plan in a rare revision to its bond programme for the current fiscal year, trimming overall bond issuance as a result, a draft document seen by Reuters showed. The move aims to soothe market concerns over supply-demand imbalances, after weak demand at recent auctions and a surge in super-long yields to record high levels last month rattled the bond market. The step also follows the Bank of Japan's decision this week to decelerate the pace of bond purchases reductions from next fiscal year, signalling its preference to move cautiously in removing remnants of its massive, decade-long stimulus. The revised issuance plan will be presented to primary dealers for discussion at a meeting on Friday. Additionally, there are also ideas of buying back some previously issued super-long JGBs with low interest rates to improve the supply-demand balance. The planned reduction in 20-, 30- and 40-year super-long bond sales would be partly offset by increased issuance of shorter-term notes, as well as bonds specifically designed for households. As a result, the total Japanese government bond (JGB) scheduled sales for the year through next March are set to fall by 500 billion yen ($3.44 billion) to 171.8 trillion yen, according to the draft of the revised bond programme. Issuing a larger amount of shorter-term bonds, however, would require a careful balancing act as the government would need to roll over debt more frequently and make its finances more vulnerable to bond market swings. Specifically, the revised plan calls for reducing 20-year JGB sales by 900 billion yen to 11.1 trillion yen, 30-year JGBs by 900 billion yen to 8.7 trillion yen and 40-year JGBs by 500 billion yen to 2.5 trillion yen. This means starting next month, sales of each of these tenors will be cut by 100 billion yen at every auction. Instead, the government will boost sales of two-year debt, one-year and six-month treasury discount bills by 600 billion yen each. At every auction starting October, sales of two-year debt will be raised by 100 billion yen to 2.7 trillion yen. The government will also increase issuance of principal-guaranteed JGBs for households by 500 billion yen. The original plan had called for cuts in 30- and 40-year bond sales to reflect shrinking demand from life insurers who mostly completed purchases of longer-dated bonds to comply with new solvency regulations. But as the worsening finances of advanced economies drew more market scrutiny, super-long JGBs became a target of a global bond selloff last month. ($1 = 145.1500 yen) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
NHK
03-06-2025
- 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
