The measure also follows the decision of the Bank of Japan to decelerate the rhythm of reducing bond purchases from next fiscal year. It moves cautiously in the elimination of the remains of its massive stimulus of a decade.
The government of Japan plans to cut the very long -term bond sales in approximately 10% compared to the original plan in an unusual review of its bond program for the current fiscal yearcutting as a result the total bond issuance, according to a document draft to which Reuters had access.
The measure aims to calm market concerns about imbalances between supply and demand, after the weak demand in the last auctions and the increase in the back of the bonds in the very long term to record levels last month stirred the bond market. The measure also follows the decision of the Bank of Japan of this week of decelerating the rhythm of reducing bond purchases from next fiscal year, pointing out its preference for acting cautiously in the elimination of the remains of its massive stimulus of one decade.
The revised issuance plan will be presented to the main intermediaries for discussion at a meeting on Friday.
Besides, The idea of repurcharging some in the long term previously issued with low interest rates to improve the balance between supply and demand.
The expected reduction of bond sales in the very long term at 20, 30 and 40 years would be partially compensated with a greater emission of more short -term bonds, as well as bonds specifically designed for homes.
As a result, total JGB sales planned for the year until next March will be reduced by 500,000 million yen (US $ 3440 million), up to 171.8 billion yen, according to the draft of the reviewed bond program.
By Takaya Yamaguchi, from Reuters Agency
Source: Ambito
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