Citigroup: The softening of long-term Japanese government bonds requires government action.

Tomohisa Fujiki of Citigroup Investment Research reported that, based on the yield curve, the weakness of Japan's ultra-long government bonds "clearly requires action from the Japanese Ministry of Finance and the Bank of Japan". He stated that reducing issuance and adjusting the maturity of the "routine bond buying" operations at the ultra-long end would be the easiest measures to implement. Routine bond buying is the purchase operation conducted by the Bank of Japan to manage the yield curve. He stated: "We expect that if action is taken, the yield curve will flatten, but the medium-term impact may be limited."