Post on 13-Jul-2020
What’s New: Central Government Debt (As of March 31, 2018) p. 2 Outstanding government bonds and borrowings increased to 1,087.8 trillion yen from
the end of December (1,085.8 trillion yen) by 2.1 trillion yen.
Long-term outstanding central government debt increased to 881.0 trillion yen from the end of December (879.5 trillion yen) by 1.5 trillion yen.
Monthly Topic: GDP and Foreign Investors’ Bond Holdings by Region p. 3-4 Real GDP contracted by 0.2% (annual rate 0.6%) from the previous quarter because
of the temporary factors including higher vegetable prices and downturns in smartphone sales. However, Japan’s recovery seems to be still ongoing because Real GDP expanded by 1.5% through FY2017.
The Ministry of Finance and the Bank of Japan released a region-by-region breakdown of JGBs and other Japanese bonds held overseas in the international balance of payments statistics. According to the statistics, JGB and other Japanese bond holdings by foreign investors at the end of 2017 totaled (1) 70.8 trillion yen in Europe, (2) 34.2 trillion yen in North America, (3) 31.1 trillion yen in Asia, (4) 7.9 trillion yen in Latin America, and (5) 4.7 trillion yen in the Middle East.
IR Office: “San-pou-yoshi”, an instruction by old Japanese merchants p. 5 A short essay on the concept “San-pou-yoshi” which was created by old Japanese
merchants, Oumi merchants.
(Statistics) JGB Primary Market … p. 6 Liquidity Enhancement Auctions and JGB Buy-Back … p. 7
JGB Secondary Market … p. 8 Investor Trends and JGB Outstanding … p. 10
Economic and Financial Trends … p. 14 Information … p. 15
Monthly Newsletter of the Ministry of Finance, Japan JAPANESE GOVERNMENT BONDS
SUMMARY
The Ministry of Finance www.mof.go.jp
Our fundamental goal of debt management policy is to achieve stable and smooth financing for our national accounts and to minimize medium-to-long term financing costs.
June 2018
-1-
Central Government Debt (As of March 31, 2018) On May 10, the Ministry of Finance released the update on central government debt. Debt
outstanding and composition as of the end of March 2018 are as follows.
The end of March 2018
(Actual)
Increase or Decrease(-) from
the End of the Previous Quarter
1) Outstanding Government Bonds and Borrowings
General Bonds 853.2 1.8
Fiscal Investment and Loan Program Bonds (FILP Bonds) 94.5 1.7
Borrowings, Subsidy Bonds, etc. 65.5 -0.3
Financing Bills (FBs) 74.6 -1.1
Total 1,087.8 2.1
2) Outstanding Government-Guaranteed Debts
Government-Guaranteed Debts 39.7 -1.0
The end of Mar. 2018 (Actual)
Increase or Decrease(-) from
the End of the Previous Quarter
The end of Mar. 2018 (Estimate)
① General Bonds 853.2 1.8 Approx. 864
② Fiscal Investment and Loan Program Bonds Not included Not included Not included
③ Borrowings, Subsidy Bonds, etc. (note 1) 27.8 -0.3 Approx. 29
④ Financing Bills Not included Not included Not included
Long-term debt outstanding of central governments 881.0 1.5 Approx. 893
⑤ Long-term debt outstanding of local governments (note 2) Approx. 195
Long-term debt outstanding of central and local governments (note 2) Approx. 1,087
-2-
(trillion yen)
Notes:
1. Figures may not sum up to the total because of rounding.
2. Above "General Bonds" includes amount (48,674.1 billion yen) of Front Loading Issuance of Refunding Bonds for refunding next year.
3. Above "Outstanding Government Bonds and Borrowings" includes government bonds and borrowings held by government.
4. Figures are total of the general account and all special accounts, and the coverage is different from the central government defined in SNA.
5. The data as of June 30, 2018 will be released on August 10, 2018.
Details: https://www.mof.go.jp/english/jgbs/reference/gbb/e201803.html
Outstanding government bonds and borrowings increased to 1,087.8 trillion yen from the end of December (1,085.8 trillion yen) by 2.1 trillion yen. This is mainly because the total for general bonds increased by 1.8 trillion yen and that for FILP bonds increased by 1.7 trillion yen.
Long-term outstanding central government debt, which does not include FILP bonds, FBs and some of the borrowings related to local governments, increased to 881.0 trillion yen from the end of December (879.5 trillion yen) by 1.5 trillion yen.
<Main Points>
Note 1: The borrowings of the Special Account for Allotment of Local Allocation Tax and Local Transfer Tax (end of FY2017:approx.¥32trillion) are included in [⑤Long-term
debt outstanding of local governments] because the burden of redemption funds falls on local governments.
Note 2: The actual figure of [⑤Long-term debt outstanding of local governments] is blank, because quarterly data has not been created.
Central Government Debt
(Reference) Long-term debt outstanding of central and local governments The MOF has announced the “Long-term debt outstanding of central and local governments” whose interest payments and redemption funds are mainly to be covered by tax revenues, from the viewpoint of transparency of fiscal management. The statistics are derived by adding the long-term debt outstanding of local governments to the above mentioned Central Government Debt, while excluding Fiscal Investment and Loan Program Bonds and Financing Bills.
(trillion yen)
What’s new
1.2
-0.7-0.4
0.2
1.20.9
0.8
-0.0
1
-1.8
-0
0.6
1.5
0 0.1
-0.3
0.8
0.3 0.2 0.2
0.70.5 0.5
0.1
-0.2
-3.5
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ
2012 2013 2014 2015 2016 2017 2018
(%)
Private Demand Public DemandForeign Demand Real GDP
Contributions to change from the previous quarter (Seasonally adjusted) (%)2018
1~3 4~6 7~9 10~12 1~30.7 0.5 0.5 0.1 -0.2 *** -0.60.6 0.8 -0.0 0.2 -0.2 *** -0.9
(0.6) (0.8) (-0.0) (-0.2) *** (-0.2) ***0.7 0.7 0.1 0.3 -0.3 (-0.2) -1.20.5 0.7 -0.7 0.2 -0.0 (-0.0) -0.00.5 0.7 -0.7 0.2 -0.0 (-0.0) -0.1
Excluding Imputed Rent 0.6 0.8 -0.9 0.2 -0.1 (-0.0) -0.31.2 0.9 -1.6 -2.7 -2.1 (-0.1) -8.20.6 0.8 1.0 0.6 -0.1 (-0.0) -0.3
(0.1) (-0.1) (0.4) (0.1) *** (-0.1) ***0.2 1.1 -0.5 -0.1 0.0 (0.0) 0.00.2 0.2 0.0 -0.0 0.0 (0.0) 0.1
-0.0 4.7 -2.6 -0.4 0.0 (0.0) 0.1(0.0) (0.0) (-0.0) (-0.0) *** (-0.0) ***(0.1) (-0.3) (0.5) (-0.1) *** (0.1) ***
1~3
Gross Domestic Product
Domestic Demand
Private DemandPrivate Consumption
Consumption of Households
2017 2018
Private Residential Investment
Change in Private Inventories
Government Consumption
Private Non-Resi. Investment
Public Demand
Public InvestmentChange in Public Inventories
Net Exports of Goods & Services
1. Quarterly Estimates of GDP Jan.–Mar. 2018
The first preliminary GDP estimate (Jan.-Mar. 2018) was released on May 16. Real GDP contracted by 0.2% (annual rate 0.6%) from the previous quarter. Real GDP contracted for the first time in 9 quarters. Consumer spending fell 0.0% from the previous quarter. This is mainly because of the
temporary factors including a spike in vegetable prices and downturns in smartphone sales. However, Japan’s recovery seems to be still ongoing because Real GDP expanded by 1.5% through FY2017.
2. Foreign Investors’ Bond Holdings by Region The Ministry of Finance and the
Bank of Japan released a region-by-region breakdown of JGBs and other Japanese bonds held overseas in the international balance of payments statistics.
According to the statistics, JGB and other Japanese bond holdings by foreign investors at the end of 2017 totaled (1) 70.8 trillion yen in Europe, (2) 34.2 trillion yen in North America, (3) 31.1 trillion yen in Asia, (4) 7.9 trillion yen in Latin America, and (5) 4.7 trillion yen in the Middle East.
A country-by-country breakdown of Japanese bonds held overseas indicates that the five largest holders of these bonds were (1) the U.S. with 33.4 trillion yen, (2) Belgium with 21.7 trillion yen, (3) Luxembourg with 18.8 trillion yen, (4) China with 14.1 trillion yen, and (5) the U.K. with 11.2 trillion yen.
Development of Real GDP (Quarterly, seasonally adjusted series)
MONTHLY TOPIC
Note1: Change from the previous quarter (seasonally adjusted) Note2: Annual rate Note3: The Figures in () indicate contributions to Changes in GDP. Source: Cabinet Office, Government of Japan
Source: Cabinet Office, Government of Japan
Note1
Note2
Note1: Figures include JGB, other bonds and bills. Note2: The breakdown does not necessarily give a region-by-region breakdown of final investors. Source: Ministry of Finance, Bank of Japan
(CY)
-3-
The two charts below indicate the breakdown of the statistics by bond maturity. According to
the statistics, long-term bond (more than one year) holdings by foreign investors at the end of 2017 totaled (1) 41.3 trillion yen in Europe, (2) 22.2 trillion yen in North America, (3) 21.1 trillion yen in Asia, (4) 4.8 trillion yen in Latin America, and (5) 2.7 trillion yen in the Middle East. Short-term (one year or less) bond holdings by foreign investors at the end of 2017 totaled (1) 29.5 trillion yen in Europe, (2) 12.0 trillion yen in North America, (3) 10.1 trillion yen in Asia, (4) 3.1 trillion yen in Latin America, and (5) 2.2 trillion yen in Oceania.
Note1: Figures include T-Bill, other bonds and bills. Note2: The breakdown does not necessarily give a region-by-region breakdown of final investors Source: Ministry of Finance, Bank of Japan
Short-term bonds (one year or less)
Note1: Figures include JGB, other bonds and bills. Note2: The breakdown does not necessarily give a region-by-region breakdown of final investors. Source: Ministry of Finance, Bank of Japan
Long-term bonds (more than one year)
-4-
MOF International Investment Position (Regional Portfolio Investment and Financial Derivatives Position (Liabilities)) URL: https://www.mof.go.jp/international_policy/reference/iip/rdip2017.xls BOJ Time-Series Data Search (historical data, etc.) URL: http://www.stat-search.boj.or.jp/index_en.html
Have you ever heard of "San-pou-yoshi (三方良し)" in Japanese? “San”
or “三” means three. “Pou” or “方” usually means direction, but in this case can mean stakeholders. “Yoshi” or “良し” means good. So, this phrase can be understood as “Good for all three (stakeholders)” or "Win-Win-Win." It is a famous old management instruction of Oumi merchants. They were famous for their success as merchants from the 17th Century. They were local merchants from Shiga prefecture which used to be a traffic hub in Japan.
Their instruction told them to act to satisfy not only themselves as sellers and their customers who are buyers, but also to contribute to the community through their business. As their business expanded outside their local area, it was necessary to build trust in their business areas. “The only winners are the sellers and their buyers” could be fine for both of them in a short-term period, but they might not be able to do their business for a long time. This "Good for all three" or "Win-Win-Win" relation makes their business a long-lasting one.
As the Editor’s personal view, I was wondering whether Oumi merchants might be one of the leading businesspeople in CSR (Corporate Social Responsibility). Well, this instruction also may fit the JGB market. “Good for all three - the Debt Management Office, investors, and the JGB market” This might be key factor of our long-lasting relation.
-5-
IR OFFICE
If you have any questions regarding the contents of this newsletter, please do not hesitate to contact us at: JGB-IR@mof.go.jp
Auction Results
(Bonds)
Auction Date Type of Security Issue Number Maturity Date Nominal
Coupon
Amounts of Competitive
Bids (billion yen)
Amounts of Bids
Accepted (billion yen)
Yield at the Lowest
Accepted Price
Yield at the Average
Price
Amounts of Non-Competitive Bids Tendered
/Accepted (billion yen)
Amounts of Bids Accepted at the
Non-price- competitive Auction Ⅰ (billion yen)
Amounts of Bids Accepted at the
Non-price- competitive Auction Ⅱ (billion yen)
3/1/2018 10-year 350 3/20/2028 0.1% 8,430.3 1,859.5 0.062% 0.061% 0.465 438.9 340.1 3/6/2018 30-year 58 3/20/2048 0.8% 2,740.8 647.1 0.753% 0.750% - 152.1 88.1 3/13/2018 5-year 135 3/20/2023 0.1% 7,469.5 1,786.3 ▲0.106% ▲0.108% - 413.0 - 3/15/2018 20-year 164 3/20/2038 0.5% 3,597.3 804.9 0.544% 0.543% - 194.1 127.7 3/27/2018 40-year 10 3/20/2057 0.9% 1,593.5 499.5 0.885% - - - 66.6 3/29/2018 2-year 387 4/15/2020 0.1% 7,919.8 1,704.5 ▲0.137% ▲0.138% - 395.4 - 4/3/2018 10-year 350 3/20/2028 0.1% 7,445.8 1,789.7 0.033% 0.032% 1.286 408.2 328.4 4/12/2018 30-year 58 3/20/2048 0.8% 2,451.0 565.1 0.716% 0.714% - 133.7 103.7 4/17/2018 5-year 135 3/20/2023 0.1% 7,144.8 1,623.9 ▲0.118% ▲0.120% - 375.4 - 4/19/2018 20-year 164 3/20/2038 0.5% 2,972.2 804.4 0.505% 0.500% - 194.7 - 4/24/2018 2-year 388 5/15/2020 0.1% 9,349.0 1,733.3 ▲0.134% ▲0.134% - 366.5 199.2 5/8/2018 10-year 350 3/20/2028 0.1% 7,446.3 1,770.9 0.047% 0.046% 0.386 427.6 232.8 5/10/2018 10-year Inflation-Indexed Bonds 23 3/10/2028 0.1% 1,605.7 399.6 ▲0.513% - - - 47.5 5/15/2018 30-year 58 3/20/2048 0.8% 2,497.7 566.6 0.746% 0.746% - 132.5 96.5 5/17/2018 5-year 135 3/20/2023 0.1% 6,999.8 1,657.1 ▲0.101% ▲0.103% - 342.1 - 5/22/2018 20-year 164 3/20/2038 0.5% 3,295.1 799.8 0.533% 0.532% - 199.1 - 5/29/2018 40-year 11 3/20/2058 0.8% 1,567.0 399.4 0.865% - - - 57.3 5/31/2018 2-year 389 6/1/2020 0.1% 8,425.5 1,716.4 ▲0.144% ▲0.147% - 383.0 15.0
Auction Results
(Treasury Discount Bills)
Auction Date Type of Security Issue Number Maturity Date
Amounts of Competitive Bids
(billion yen)
Amounts of Bids Accepted
(billion yen)
Yield at the Lowest
Accepted Price
Yield at the Average
Price
Amounts of Bids Accepted at the
Non-price- competitive Auction Ⅰ (billion yen)
3/1/2018 3-month 742 6/4/2018 15,045.16 3,578.08 ▲0.1944% ▲0.2112% 841.90 3/7/2018 6-month 743 9/10/2018 9,656.10 1,884.38 ▲0.1543% ▲0.1623% 415.60 3/8/2018 3-month 744 6/11/2018 13,994.70 3,563.06 ▲0.1824% ▲0.1976% 826.90 3/15/2018 3-month 745 6/18/2018 15,809.76 3,535.38 ▲0.1423% ▲0.1539% 834.60 3/16/2018 1-year 746 3/20/2019 10,318.40 1,885.16 ▲0.1408% ▲0.1427% 414.80 3/22/2018 3-month 747 6/25/2018 15,692.90 3,519.17 ▲0.1503% ▲0.1587% 830.80 4/3/2018 3-month 748 7/2/2018 17,689.80 3,545.54 ▲0.1326% ▲0.1393% 804.40 4/5/2018 3-month 749 7/9/2018 20,192.30 3,545.14 ▲0.1303% ▲0.1355% 834.80 4/6/2018 6-month 750 10/10/2018 13,304.10 1,868.80 ▲0.1534% ▲0.1594% 431.20 4/12/2018 3-month 751 7/17/2018 18,885.40 3,545.27 ▲0.1625% ▲0.1685% 834.70 4/18/2018 1-year 752 4/22/2019 11,598.50 1,700.10 ▲0.1757% ▲0.1796% 399.90 4/19/2018 3-month 753 7/23/2018 16,287.90 3,576.56 ▲0.1744% ▲0.1804% 843.40 4/26/2018 3-month 754 7/30/2018 15,381.10 3,575.27 ▲0.1358% ▲0.1556% 804.70 5/2/2018 3-month 755 8/6/2018 18,453.30 3,581.04 ▲0.1323% ▲0.1411% 838.90 5/9/2018 6-month 756 11/12/2018 10,037.80 1,917.48 ▲0.1255% ▲0.1294% 382.50 5/11/2018 3-month 757 8/13/2018 15,766.40 3,620.95 ▲0.1222% ▲0.1275% 789.00 5/17/2018 1-year 758 5/20/2019 10,647.15 1,706.15 ▲0.1371% ▲0.1391% 393.80 5/18/2018 3-month 759 8/20/2018 17,888.30 3,571.64 ▲0.1323% ▲0.1391% 808.30 5/25/2018 3-month 760 8/27/2018 15,985.50 3,532.64 ▲0.1383% ▲0.1431% 817.30
Auction Calendar for Jun. 2018 – Aug. 2018 Auction Date Issue Auction Date Issue Auction Date Issue Auction Date Issue
6/1(Fri) T-Bills (3-month) 6/28(Thu) 2-year 7/20(Fri) Liquidity Enhancement Auction (remaining maturities of 1-5 years) 8/16(Thu) 5-year
6/5(Tue) 10-year 6/29(Fri) T-Bills (3-month) 7/24(Tue) 40-year 8/17(Fri) T-Bills (3-month)
6/7(Thu) T-Bills (6-month) 7/3(Tue) 10-year 7/26(Thu) 2-year 8/21(Tue) 20-year
6/7(Thu) Liquidity Enhancement Auction (remaining maturities of 15.5-39 years) 7/5(Thu) 30-year 7/27(Fri) T-Bills (3-month) 8/23(Thu) Liquidity Enhancement Auction
(remaining maturities of 5-15.5 years)
6/8(Fri) T-Bills (3-month) 7/6(Fri) T-Bills (3-month) 8/2(Thu) 10-year 8/24(Fri) T-Bills (3-month)
6/12(Tue) Liquidity Enhancement Auction (remaining maturities of 5-15.5 years) 7/9(Mon) T-Bills (6-month) 8/3(Fri) T-Bills (3-month) 8/28(Tue) Liquidity Enhancement Auction
(remaining maturities of 15.5-39 years)
6/14(Thu) T-Bills (3-month) 7/10(Tue) 5-year 8/7(Tue) 10-year Inflation-Indexed Bonds 8/30(Thu) 2-year 6/19(Tue) T-Bills (1-year) 7/12(Thu) 20-year 8/9(Thu) T-Bills (6-month) 8/31(Fri) T-Bills (3-month)
6/19(Tue) 30-year 7/13(Fri) T-Bills (3-month) 8/9(Thu) 30-year 6/21(Thu) 5-year 7/18(Wed) Liquidity Enhancement Auction
(remaining maturities of 5-15.5 years) 8/10(Fri) T-Bills (3-month) 6/22(Fri) T-Bills (3-month) 7/19(Thu) T-Bills (1-year) 8/14(Tue) T-Bills (Approx.2-month) 6/26(Tue) 20-year 7/20(Fri) T-Bills (3-month) 8/16(Thu) T-Bills (1-year)
Top 10 PDs by Total Purchase in Auctions (Calculated by Duration) (Oct. 2017 ~ Mar. 2018) 1 Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. 6 Merrill Lynch Japan Securities Co., Ltd. 2 Nomura Securities Co., Ltd. 7 SMBC Nikko Securities Inc. 3 Daiwa Securities Co. Ltd. 8 Deutsche Securities lnc. 4 Mizuho Securities Co., Ltd. 9 Goldman Sachs Japan Co., Ltd. 5 BNP Paribas Securities (Japan) Limited 10 Morgan Stanley MUFG Securities Co., Ltd.
JGB PRIMARY MARKET
Note.1: The above calendar may be changed or added in light of changes in circumstances. In such cases, it will be announced in advance. Note.2: Each issue amount will be announced about one week prior to each auction date. Note.3: The issue date of Treasury Discount Bills auctioned on August 14, 2018 is August 15, 2018, and the maturity date is October 3, 2018.
(Until 31 May 2018)
(Until 31 May 2018)
-6-
Results of Liquidity Enhancement Auctions
Auction Date Amounts of Competitive
Bids (billion yen)
Amounts of Bids
Accepted (billion yen)
Average Accepted Spread
Highest Accepted Spread
Issues Re-opened
3/8/2018 1,472.8 300.0 ▲0.033% ▲0.023% 5-year(124, 125, 126, 131) 10-year(311) 20-year(43)
3/20/2018 1,948.9 549.4 ▲0.002% 0.001% 10-year(328, 329, 330, 331, 338) 20-year(61, 66, 73, 81, 86, 122, 130) 30-year(2, 3, 10)
4/5/2018 1,242.2 499.5 0.002% 0.008% 20-year(150) 30-year(22, 26, 27, 28, 29, 32, 33, 34, 35, 36, 40, 41, 42, 45, 46, 47, 48, 49, 50, 51, 52, 54, 56, 57) 40-year(1, 2, 4, 5, 6)
4/10/2018 2,336.6 598.2 ▲0.002% 0.000% 10-year(329, 330, 332, 334, 340, 341, 346, 348) 20-year(63, 75, 76, 77, 84, 85, 92, 93, 94, 97, 113, 120, 125, 126, 134, 143, 144, 146)
5/2/2018 1,459.5 399.4 ▲0.008% ▲0.006% 5-year(123, 124, 125, 126, 127, 131) 10-year(309, 310, 311, 312, 313, 314, 325) 20-year(43)
5/24/2018 2,006.7 597.1 ▲0.008% ▲0.007%
10-year(334, 335, 339) 20-year(64, 72, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 85, 86, 87, 90, 91, 92, 93, 94, 95, 96, 99, 100,
101, 104, 105, 107, 108, 109, 115, 116, 117, 118, 122, 136, 141, 146) 30-year(2, 3, 4, 10)
Target Zones of Liquidity Enhancement Auctions for the First Quarter of FY 2018
10-year Inflation-Indexed
Auction Date Amounts of
Competitive Bids (billion yen)
Amounts of Bids Accepted
(billion yen)
Average Accepted
Spread (yen)
Highest Accepted
Spread (yen) Issue Numbers
10/20/2017 90.2 20.0 ▲0.182 ▲0.09 18, 19, 20, 22 12/11/2017 102.5 20.0 ▲0.004 0.05 18, 19, 20, 21, 22 2/13/2018 115.4 20.0 ▲0.211 ▲0.17 17, 20, 21, 22 4/11/2018 111.6 20.1 ▲0.082 ▲0.06 20, 21, 22
LIQUIDITY ENHANCEMENT AUCTIONS AND JGB BUY-BACK
①Remaining maturity : approx.1‐~5‐year
③Remaining maturity : approx.15.5‐~39‐year
Note1: JN shows 2‐year JGBs. JS shows 5‐year JGBs. JL shows 20‐year JGBs. JX shows 30‐year JGBs. JU shows 40‐year JGBs. Outstanding amount is as of the end of March 2018. Note2: All issues in the graph above will be eligible afterward.
Buy-back Results
(Until 31 May 2018)
(Until 31 May 2018)
②Remaining maturity : approx.5‐~15.5‐year
-7-
0500
1,0001,5002,0002,5003,0003,5004,0004,5005,0005,5006,0006,5007,000
JN37
6
JN37
7
JS11
8
JS11
9
301
302
JN37
8
JN37
9
JN38
0
JS12
0
JS12
1
303
304
JL43
JN38
1
JN38
2
JN38
3
JS12
2
305
JN38
4
JN38
5
JN38
6
JS12
3
306
307
JL44
JL45
JS12
4
308
309
JL46
JS12
5
310
311
JL47
JS12
6
312
JL48
JS12
7
313
314
JL49
JL50
JS12
8
315
316
JL51
JS12
9
317
318
JL52
JS13
0
319
320
JL53
JL54
JS13
1
321
322
JL55
JS13
2
323
324
JL56
JL57
JS13
3
325
JL58
JS13
4
326
327
JL59
JL60 328
JL61
Amount issued by Liquidity Enhancement Auction Outstanding amount in the market (excluding amount issued by Liquidity Enhancement Auction)
1 2 5
(Remaining maturities)
(billion yen)
0500
1,0001,5002,0002,5003,0003,5004,000
JL14
7
JX13
JL14
8
JX14
JL14
9
JX15
JL15
0
JX16
JL15
1
JX17
JL15
2
JX18
JL15
3
JX19
JL15
4
JX20
JL15
5
JX21
JL15
6
JX22
JL15
7
JX23
JL15
8
JX24
JL15
9
JX25
JL16
0
JX26
JL16
1
JL16
2
JX27
JL16
3
JX28
JX29
JX30
JX31
JX32
JX33
JX34
JX35
JX36
JX37
JX38
JX39
JX40
JX41
JX42
JX43
JX44
JX45
JX46
JX47
JX48
JX49
JX50
JX51
JX52
JX53
JX54
JX55
JX56
JX57 JU1
JU2
JU3
JU4
JU5
JU6
JU7
JU8
JU9
JU10
Amount issued by Liquidity Enhancement Auction Outstanding amount in the market (excluding amount issued by Liquidity Enhancement Auction)(billion yen)
(Remaining maturities)15.5 20 39
0500
1,0001,5002,0002,5003,0003,5004,0004,5005,000
329
JL62
JL63 33
033
1JL
64 332
JL65
JL66 33
3JL
67JL
68JL
69 334
JL70
JL71 33
5JL
72 336
337
JL73
JL74 33
8JL
75JL
76JL
77 339
JL78
JL79
JL80 34
0JL
81JL
82 341
JL83
JL84 34
2JL
85JL
86JL
87 343
JL88
JL89 34
4JL
90JL
91 345
JL92 34
6JL
93JL
94 347
JL95
JL96 34
8JL
97JL
98 349
JL99
JL10
0JL
101
JL10
2JL
103
JL10
4JL
105
JL10
6JL
107
JL10
8JL
109
JL11
0JL
111
JL11
2JL
113
JX1
JL11
4JL
115
JX2
JL11
6JL
117
JX3
JL11
8JL
119
JL12
0JL
121
JL12
2JX
4JL
123
JL12
4JL
125
JL12
6JL
127
JX5
JL12
8JL
129
JL13
0JL
131
JX6
JL13
2JL
133
JL13
4JL
135
JL13
6JX
7JL
137
JL13
8JL
139
JL14
0JX
8JL
141
JL14
2JX
9JL
143
JL14
4JX
10JL
145
JX11
JL14
6JX
12
Amount issued by Liquidity Enhancement Auction Outstanding amount in the market (excluding amount issued by Liquidity Enhancement Auction)
5 10 15.5
(Remaining maturities)
(billion yen)
Note: BEI (Japan: 10 year) is calculated based on the compound interest rate of the new Inflation-Indexed Bonds and the 10-Year Bonds
Source: Japan: Calculation by the Ministry of Finance based on the information on interest rates offered by NIKKEI QUICK. U.S.A., U.K.: Bloomberg.
JGB SECONDARY MARKET
JGB Yield Curves
Source: Japan Bond Trading Co., Ltd.
Yields of JGB
Long - Term Interest Rates (10Yr) Source: Bloomberg
Source: Bloomberg
-8-
Yield and Volatility (10Yr)
Break-Even Inflation Rates
Source: Bloomberg, Calculation by the Ministry of Finance
(Until 27 April 2018)
(Until 27 April 2018)
(Until 27 April 2018)
(Until 27 April 2018)
-1%
0%
1%
2%
3%
4%
5%
Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18
BEI (Japan : 10 year)
BEI (U.S.A. : 10 year)
BEI (U.K. : 10 year)
Short-Term Interest Rates
Source: Bank of Japan, Japanese Bankers Association
JGB Over-the-Counter Trading Volume (TOKYO)
Trading Volume of 10-Year JGB Futures
Repurchase Transactions
-9-
Source: Japan Securities Dealers Association
Source: Tokyo Stock Exchange (until Mar.2014), Osaka Exchange (from Apr. 2014)
Source: Japan Securities Dealers Association
(trillion yen)
(trillion yen)
(trillion yen)
(Until 27 April 2018)
-0.1%
0.0%
0.1%
0.2%
0.3%
0.4%
0.5%
Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18
Call Rate (Uncollateralized Overnight)
TIBOR 3-months (Euro-Yen)
Basic Loan Rate
Apr 2013(Actual)
Apr 2018(Actual)
Monetary Base 155 498
JGBs 98 434
CP 1.4 2.3
Corporate Bonds 2.9 3.2
ETFs 1.7 19.5
J-REITs 0.13 0.47
Total Assets 175 535
Super long-term
Long-term
Medium-term
T-bills
-9.0
-7.0
-5.0
-3.0
-1.0
1.0
3.0
5.0
7.0
JanApr Jul OctJanApr Jul OctJanApr Jul OctJanApr Jul OctJanApr Jul OctJanApr
City Banks
Net Purchase
Net Sale
2013 2014 2015 2016 2017 2018
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
JanApr Jul OctJanApr Jul OctJanApr Jul OctJanApr Jul OctJanApr Jul OctJanApr
Regional banks
Net Purchase
Net Sale
2013 2014 2015 2016 2017 2018
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
JanApr Jul OctJanApr Jul OctJanApr Jul OctJanApr Jul OctJanApr Jul OctJanApr
Life and non-life insurance companies
Net Purchase
Net Sale
2013 2014 2015 2016 2017 2018
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
22.0
24.0
JanApr Jul OctJanApr Jul OctJanApr Jul OctJanApr Jul OctJanApr Jul OctJanApr
Foreigners
Net Purchase
Net Sale
2013 2014 2015 2016 2017 2018
(unit: trillion yen)(unit: trillion yen)
(unit: trillion yen) (unit: trillion yen)
-10-
Trends in Bank Assets by Types
INVESTOR TRENDS AND JGB OUTSTANDING Trends in JGBs Transactions (by investor type)
BOJ Trends
Regional Banks City Banks
Source: Bank of Japan
(trillion yen) (trillion yen)
Loans
Cash and Deposits
Government Bonds
Municipal Bonds
Corporate Bonds
Equities
Foreign Securities
Source: Bank of Japan
Source: Japan Securities Dealers Association
-11-
JGBs Holdings by Foreign Investors
Banks(Banking Accounts) Life Insurance Companies
Transactions of Domestic Securities by Non-Residents
Note: “JGB” includes T-Bills. Source: Bank of Japan
Source: Ministry of Finance
Transactions of Foreign Securities by Residents (by Investor types)
Foreign Investors Presence
Note.1: Quarterly basis. Note.2: “JGB” includes T-Bills. The figures of ②excludes dealers’ transactions. Source: Bank of Japan, Japan Securities Dealers Association, Tokyo Stock Exchange,
Osaka Exchange
(trillion yen)
(trillion yen)
Source: Japan Securities Dealers Association
(trillion yen)
Outstanding of Repurchase Agreements (by Investor types)
Source: Ministry of Finance
Source: Japan Securities Dealers Association
0
50
100
150
200
250
300
350
400
450
500
550
600
650
700
750
800
850
900
FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017
17.0% 17.8% 18.3% 18.2% 17.9% 17.3% 16.4% 15.1% 14.3% 13.4%
11.4%13.0% 12.5% 11.9% 12.4% 12.0% 11.1% 10.6% 10.5% 10.5%
8.9%8.5%
7.9% 8.6% 8.1% 7.8% 7.8% 7.9% 7.7% 8.2%9.2%8.4%
9.0% 8.6% 8.1% 8.1% 8.2% 7.8% 8.2% 7.1%8.4%
8.8%8.4% 7.8% 7.8% 7.8% 7.4% 7.8% 6.8% 6.8%
5.3%
5.2%4.7%
4.9% 4.4% 4.2% 5.0% 4.2% 4.4% 5.0%
5.6%
4.9%5.2%
4.6% 4.5%5.0% 4.3% 4.4% 4.8% 4.7%
5.5%
5.5%4.8%
4.8%5.3%
4.5% 4.5% 5.0% 4.8% 5.0%
6.2%
5.2%5.1%
5.6%4.7%
4.8% 5.2% 4.9% 5.1% 4.7%
5.0%
4.7%5.2%
4.4%4.3%
4.6% 4.2% 4.5% 4.1% 4.0%
14.8%
14.4%
14.4%14.9%
15.6%16.5%
17.7% 18.4% 19.2% 19.6%
2.7%
3.6%
4.6%
5.8%
6.7%
7.5%8.3%
9.4%10.1%
11.1%
20 yrs-
10-20 yrs
9-10 yrs
8-9 yrs
7-8 yrs
6-7 yrs
5-6 yrs
4-5 yrs
3-4 yrs
2-3 yrs
1-2 yrs
-1 yr
(trillion yen)
(at the end of FY)
545.9
594.0
636.3669.9
705.0
743.9
774.1
805.4830.6
*years to maturity
Average
YTM* 6Y3M 6Y5M 6Y8M 7Y0M 7Y3M 7Y7M 8Y0M 8Y5M 8Y7M 8Y10M
Average YTM*
(excluding saving
bonds)6Y4M 6Y6M 6Y10M 7Y1M 7Y5M 7Y8M 8Y0M 8Y5M 8Y8M 8Y11M
853.2
General Government
(ex Public Pensions)
3.4
0.3%
Fiscal Loan
Fund
0.0
0.0%
BOJ
449.4
41.1%
Banks,etc.
211.1
19.3%
Life and Non-life
Insurance,etc.
205.6
18.8%
Public
Pensions
45.9
4.2%
Pension
Funds
30.1
2.8%
Foreigners
122.5
11.2%
Households
12.4
1.1%
Others
12.0
1.1%
General Government
(ex Public Pensions)
3.4
0.3%
Fiscal Loan
Fund
0.0
0.0%
BOJ
427.2
43.2%
Banks,etc.
193.9
19.6%
Life and Non-life
Insurance,etc.
203.5
20.6%
Public
Pensions
45.9
4.6%
Pension
Funds
30.1
3.0% Foreigners
59.8
6.1%
Households
12.4
1.3%
Others
12.0
1.2%
JGB and T-Bill Holders
Breakdown by JGB and T-Bill Holders (The end of Dec. 2017 QE)
Source: Bank of Japan “Flow of Funds Accounts (Preliminary Figures)” Note1: “JGB” includes “FILP Bonds.” Note2: “Banks, etc.” includes “Japan Post Bank”, “Securities investment trust” and “Securities companies.” Note3: “Life and Non-life insurance, etc.” includes “Japan Post Insurance.”
(trillion yen)
Breakdown of Outstanding Amount of General Bonds by Remaining Years to Maturity
T-Bill Holders
Total 104.2 trillion yen
JGB Holders
Total 988.2 trillion yen
Total 1,092.4 trillion yen
-12-
General Government
(ex Public Pensions)
0.0
0.0% Fiscal Loan
Fund
0.0
0.0%BOJ
22.2
21.3%
Banks,etc.
17.2
16.5%
Life and Non-life
Insurance,etc.
2.1
2.1%
Public
Pensions
0.0
0.0%
Pension
Funds
0.0
0.0%
Foreigners
62.7
60.1%
Households
0.0
0.0%
Others
0.0
0.0%
Types The amount of redemption at maturity Scheduled redemption date
10-Year Bonds 7,423.9 June 20
10-Year Inflation-Indexed Bonds 446.7 June 10
5-Year Bonds 9,333.1 June 20
2-Year Bonds 2,599.7 June 15
Treasury Bill 2,954.0 June 20
Total 22,757.4
Source: Ministry of Finance
Time-to-Maturity Structure of Outstanding JGB(Mar. 2018)
General Bonds Issuance Amount and Outstanding
Note 1: Issuance Amount: revenue basis, FY2007-2016: Actual, FY2017: Supplementary budget, FY2018: Initial budget Note 2: Outstanding: nominal basis, FY2007-2016: Actual, FY2017 Supplementary budget, FY2018: Initial budget Source: Ministry of Finance
Market-held Balance of the Inflation-Indexed Bonds (as of the end of April, 2018)
(trillion yen)
Scheduled redemption of JGB at maturity in June, 2018
Note.1: The figures are based on the outstanding JGBs at the end of April, 2018. Note.2: The figures are the scheduled redemption at maturity and may be different from the actual redemption due to Buy-back of JGBs. Note.3: About Inflation-Indexed Bonds, the amount of redemption at maturity is adopted the inflation-adjusted principal as of April 30, 2018. Note.4: The figures do not include "JGB for Retail Investors". Note.5: If the redemption date coincides with bank holiday, the payment of redemption is carried out on the following business day. Note.6: Figures may not sum up to total because of rounding.
(billion yen)
Source: Ministry of Finance, Bank of Japan
541.5 545.9594.0
636.3669.9
705.0743.9 774.1
805.4 830.6863.9 882.8
124.6 127.1 142.4 143.1
163.1 163.3 153.6 158.0 150.5
148.3 144.1 137.9
100
200
300
400
500
600
700
800
900
0
30
60
90
120
150
180
07 08 09 10 11 12 13 14 15 16 17 18
Outstanding (right-hand scale) Issuance Amount (left-hand scale)
0100200300400500600700800900
1,0001,1001,2001,3001,4001,5001,6001,7001,8001,9002,0002,1002,200
16 17 18 19 20 21 22
(billion yen)
(issue number)
Outstanding amount(excl. BOJ holding)
BOJ holding
Old type(without
floor)
Market BOJ TotalOld 252 182 435New 6,529 1,397 7,927
-13-
114.15
89.69
69.54
60.46 58.31
42.45 39.88
42.29
40.1934.47
12.1914.36 16.29 15.7918.59
18.16 19.97 19.2718.00
14.76
4.76 5.37 6.41 7.01 6.248.19 9.46 10.83 9.24 8.94
1.31 1.33 1.93 1.88 1.96 2.09 2.28 2.42 2.70
0102030405060708090
100110120130
18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56
(trillion yen)
(FY)
Treasury Bills2-yr bondsJGBs for retail investors (3-yr-Fixed-rate)JGBs for retail investors (5-yr-Fixed-rate)5-yr bondsInflation-Indexed bondsJGBs for retail investors (Floating-rate)10-yr bonds15-yr-floating-rate bonds20-yr bonds30-yr bonds40-yr bonds
Average remaining years to maturity: 8 years and 10 months
0.6%
0.1%
-1
0
1
2
3
4
Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18
(%)
CPI
CPI excluding food (excludingalcohilic beverages) and energy
Change from the previous year
Apr.4, 2013BOJ released QQE
0.4
0.6
0.8
1
1.2
1.4
1.6
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
5.5%
6.0%
Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18
(ratio)
Apr, 20181.59 times
Apr, 20182.5%
Aug, 20090.42times
Jul, 20095.5%
Job opening-to-application ratio(right scale)
Unemployment rate(left scale)
-70%
-60%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
Jan-
09
May
-09
Sep-
09
Jan-
10
May
-10
Sep-
10
Jan-
11
May
-11
Sep-
11
Jan-
12
May
-12
Sep-
12
Jan-
13
May
-13
Sep-
13
Jan-
14
May
-14
Sep-
14
Jan-
15
May
-15
Sep-
15
Jan-
16
May
-16
Sep-
16
Jan-
17
May
-17
Sep-
17
(Diffusion index)
Large enterprises/Manufacturing
Large enterprises/Non-Manufacturing
Small enterprises/Manufacturing
Small enterprises/Non-Manufacturing
Real GDP Growth Rate
Employment Conditions
Prices
Changes in Current Account
Monetary Base Indices of Industrial Production
Total Value of Machinery Orders (Private Sector exc. Volatile orders)
TANKAN (Business Conditions)
Source: Cabinet Office "Quarterly Estimates of GDP"
Source: Ministry of Internal Affairs and Communications “CPI”
Source: Ministry of Health, Labour and Welfare “Employment Referrals for General Workers “, Ministry of Internal Affairs and Communications “Labour Force Survey”
Source: Ministry of Finance “Balance of Payments"
Source: Ministry of Economy, Trade and Industry "Indices of Industrial Production”
Source: Cabinet Office, Government of Japan "Orders Received for Machinery"
(trillion yen)
ECONOMIC AND FINANCIAL TRENDS
Source: Bank of Japan "Monetary Base"
Source: Bank of Japan "Tankan"
-14-
English Publications on JGBs Frequency URL Debt Management
Message from the Financial Bureau As needed https://www.mof.go.jp/english/jgbs/debt_management/message.htm
About JGBs As needed https://www.mof.go.jp/english/jgbs/debt_management/guide.htm
About the Debt Management Policy As needed https://www.mof.go.jp/english/jgbs/debt_management/about.htm
JGB Issuance Plan As needed https://www.mof.go.jp/english/jgbs/debt_management/plan/index.htm
Auction Calendar
Auction Calendar Monthly https://www.mof.go.jp/english/jgbs/auction/calendar/index.htm
Historical Data of Auction Results Each Auction https://www.mof.go.jp/english/jgbs/auction/past_auction_results/index.html
Topics
Product Characteristics of the JGB As needed https://www.mof.go.jp/english/jgbs/topics/bond/index.html
Treasury Discount Bills (T-Bills) Annual https://www.mof.go.jp/english/jgbs/topics/t_bill/index.htm
Japanese Government Guaranteed Bonds Annual https://www.mof.go.jp/english/jgbs/topics/gov_guaranteed_bonds/index.htm
Interest Rate Swap Semiannual https://www.mof.go.jp/english/jgbs/topics/swap/index.htm
Taxation of Government Bonds As needed https://www.mof.go.jp/english/jgbs/topics/taxation2016/index.html
For Individual Investors As needed https://www.mof.go.jp/english/jgbs/topics/individual/index.htm
Data
Central Government Debt Quarterly https://www.mof.go.jp/english/jgbs/reference/gbb/index.htm
Interest Rate Daily https://www.mof.go.jp/english/jgbs/reference/interest_rate/index.htm
STRIPS Monthly https://www.mof.go.jp/english/jgbs/reference/jgbstat/index.htm
Dialogue with the market
Advisory Councils on Government Debt Management Each Meeting https://www.mof.go.jp/english/about_mof/councils/gov_debt_management/index.html
Meeting of JGB Market Special Participants Each Meeting https://www.mof.go.jp/english/about_mof/councils/jgbsp/index.html
Meeting of JGB Investors Each Meeting https://www.mof.go.jp/english/about_mof/councils/jgb_investor/index.html
Publications
Debt Management Report Annual https://www.mof.go.jp/english/jgbs/publication/debt_management_report/index.htm
JGB Newsletter Monthly https://www.mof.go.jp/english/jgbs/publication/newsletter/index.htm
Debt Management Policy Division, Financial Bureau, Ministry of Finance 3-1-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8940 Japan
Phone: 81-3-3581-4111 Web: www.mof.go.jp
To subscribe to our Newsletter mailing list, please email: JGB-IR@mof.go.jp
-15-
INFORMATION