Two Japanese government officials told Reuters on Wednesday that the government plans to reduce government bond issuance by 0.5% next fiscal year from current year’s levels, as PM Abe seeks to achieve a balance between supporting the economy and reining in huge public debt.
Key Quotes:
The government is set to sell 128.8 trillion yen ($1.19 trillion) of Japanese government bonds (JGBs) in the next fiscal year beginning in April 2020, down from this year’s 129.4 trillion yen.
Of the total, the government is considering increasing issuance of JGBs with maturity of 40 years by 600 billion yen from the current fiscal year to 3 trillion yen.
Issuance plans for other maturities will remain unchanged.
New bond issuance for next fiscal year, which excludes bonds issued to roll over those reaching maturity, will fall for the 10th straight year to around 32.5 trillion yen, versus this fiscal year’s 32.7 trillion yen.
Meanwhile, USD/JPY sticks to its range near daily lows of 109.42, as the yen remains underpinned by doubts over the trade deal and fresh tensions between Japan and Russia after the latter seized 5 Japanese fishing vessels.
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