Reported 8 months ago
Japan's Ministry of Finance is contemplating a plan to increase the proportion of bonds with shorter maturities in its issuance, as revealed by a draft proposal from Bloomberg. This potential shift comes as the Bank of Japan reduces its bond purchases, aiming to diversify funding sources. The proposal includes the idea of issuing floating-rate bonds and highlights the necessity of reducing yield risk by shortening bond durations. This move signifies a significant departure from the recent trend of extending bond maturities, especially as the BOJ ended the yield curve control mechanism earlier this year. Market feedback and expert evaluations will play a key role in finalizing this plan.
Source: YAHOO