Japan increased planned bond issue volume

US, WASHINGTON (ORDO NEWS) — The Japanese government has increased the amount of debt it plans to release this fiscal year for the third time in less than two months, Bloomberg writes.

According to a plan published by the Ministry of Finance, output will increase to 212.3 trillion yen ($ 2 trillion) in 2020 fiscal year. The plan of April 20 provided for the issue of 152.8 trillion yen.

The 6-month bond issue will grow by more than 35 trillion yen. The rest of the growth will be distributed on bonds with a maturity of one to 30 years, with the bulk of it going to shorter-term securities. Japan will not increase the issue of its 40-year bonds.

In April, the Ministry of Finance of Japan doubled the planned volume of the issue, with the bulk of the increase also falling on securities with a shorter maturity.

An increase in bond sales will force the Bank of Japan to increase bond purchases to prevent a sharp increase in yields. The target yield of 10-year government bonds in Japan is about 0%.


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