Japan to raise government bond (JGB) sales to individuals by 500 bn yen to 5.1 trl yen

Japan to cut scheduled JGB sales to market by 500 bln yen from initial plan to 171.8 trln yen in FY2025/2026 – draft revised plan

• Japan to cut sales of 20- and 30-yr bonds by 900 bln yen each to 11.1 trln yen and 8.7 trln yen, respectively, in FY2025/2026
• Japan to increase sales of 2-yr JGBs, one-year, six-month treasury discount bills by 600 bln yen each
• Japan to increase JGB sales to households by 500 bln yen to 5.1 trln yen

Japan's government plans to cut sales of super-long bonds by about 10% from the original plan in a rare revision to its bond programme for the current fiscal year, trimming overall bond issuance as a result, a draft document seen by Reuters showed.

• move aims to soothe market concerns over supply-demand imbalances, after weak demand at recent auctions and a surge in super-long yields to record high levels last month
• also follows the Bank of Japan's decision this week to decelerate the pace of bond purchases reductions from next fiscal year, signalling its preference to move cautiously in removing remnants of its massive, decade-long stimulus

The revised issuance plan will be presented to primary dealers for discussion at a meeting on Friday.

Info via Reuters report.