Japan will reduce the issuance size of super-long-term bonds starting from July.

A revised bond issuance plan draft seen by the media shows that the Japanese Ministry of Finance is considering reducing the issuance size of ultra-long-term bonds starting from July. The plan draft released on Thursday shows that by the end of March 2026, the Japanese Ministry of Finance will propose to cut the issuance size of 20-year, 30-year, and 40-year bonds by 1 trillion yen each time. To do so, the Ministry of Finance is considering increasing the issuance of 2-year bonds and short-term bonds. According to the proposed revised plan for this fiscal year, the total issuance of 40-year bonds will be reduced by 500 billion yen to 2.5 trillion yen, while the issuance of 30-year and 20-year bonds is expected to decrease by 0.9 trillion yen each. Under the proposed revision, although the overall issuance size will generally remain the same, the total amount of market issuance through auctions this year will slightly decrease from the current 172.3 trillion yen to 171.8 trillion yen.