Global government bond turmoil temporarily comes to an end? Japan plans to significantly reduce issuance of ultra-long sovereign debt.

According to the Wisdom Finance APP, media reports quoting informed sources revealed that the Japanese government plans to significantly reduce the issuance of super-long-term Japanese government bonds (JGB) for the current fiscal year by about 10% from the original plan, and therefore slightly reduce the overall government bond issuance size. This move signifies that the Japanese Ministry of Finance has rarely revised its annual bond issuance plan, with the core purpose of alleviating market concerns about oversupply of Japanese government bonds after the central bank reduces bond purchases. In addition, with demand for five-year Japanese government bonds at the highest level in two years, Japan and global bond markets have seen a significant rebound.