The Japanese Ministry of Finance is considering reducing the size of inflation-linked bond buybacks.

Media cited two informed sources as reporting that the Japanese government is considering reducing the scale of repurchases of inflation-linked government bonds due to increased investor demand amid rising inflation expectations. The Japanese Ministry of Finance is considering a plan to reduce the repurchase scale, originally planned to repurchase 150 billion yen of inflation-linked government bonds in both April and June. It is expected that the Ministry of Finance will communicate this plan with market participants in the near future. The issuance size of inflation-linked bonds in May may remain unchanged at 250 billion yen, with a final decision expected to be announced later this month.