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Capital Markets

Japan looks to require more JGB bids from primary dealers

Proposed rise to 5% of float aims to avoid risk of undersubscription

TOKYO -- Japan's Finance Ministry plans to increase the minimum percentage of bonds that primary dealers must bid for at government bond auctions, seeking to ensure new debt is smoothly absorbed by the market.

Each primary dealer currently must bid for at least 4% of Japanese government bonds issued at every auction. With 21 financial institutions now carrying the designation, these bids cover just 84% of each float.

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