ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
Capital Markets

Japan plans first-ever cutback to 40-year bond floats

Persistently low rates seen sapping demand, prompting push to curb supply

TOKYO -- Japan intends to reduce its annual float of 40-year bonds for the first time in fiscal 2018, expecting demand to slacken as changing consumer preferences and years of low interest rates send investors elsewhere.

Though the Finance Ministry lowered its initial target for overall issuance of Japanese government bonds this fiscal year by 8.2 trillion yen ($73 billion), it raised the amount of 40-year bonds by 600 billion yen, with no change in 30-year debt floats. Total issuance appears likely to decline again next fiscal year, but with ultralong JGBs joining the trend.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more