Japan’s Primary Dealers Seeking More Sales of Shorter-Term Notes

Japan’s primary dealers have requested more sales of two-, five- and 10-year government notes, as well as a decrease in issuance of super-long bonds, according to a Ministry of Finance briefing on Thursday.

The views on issuance come as Japan’s longer maturity debt has come under pressure recently on speculation of more bond issuance under Prime Minister Sanae Takaichi’s economic plan, Japan’s biggest stimulus since the pandemic. Yields on 20-, 30-and 40-year bonds have reached multi-decade highs this month.