What’s New ⇒ Details of Auctions in Apr.-Jun. 2016 Monthly Topic ⇒ Breakdown by JGB and T-Bill Holders (Dec.2015)

WHAT’S NEW Th

○ Details of Auctions in Apr.-Jun. 2016 On March 28, 2016, the MOF issued a press release about the details of auctions in Apr.-Jun. 2016 based on the discussion at the Meeting of JGB Market Special Participants (65th Round) and the Meeting of JGB Investors (64th Round). The plan could be changed owing to market conditions and other factors.

【Issuance and reopening schedule of the 10-year, 20-year, 30-year and 40-year Bonds (FY 2016)】 ※ 10-year Bonds 4 issues in FY2016, except in the event of rapid market movements. 10-year

Bonds will be newly issued in case the gap between the market interest rate on the auction day and the coupon rate of an issue with the same maturity is more than 0.30%.

Note1) In FY2016, 10-year Bonds, 20-year Bonds, and 30-years Bonds will be issued every month.

Note2) Auction method for 40-year Bonds is Dutch-style-yield-competitive auction (0.5 bp bidding scale).

The Ministry of Finance www.mof.go.jp

Monthly Newsletter of the Ministry of Finance, Japan JAPANESE GOVERNMENT BONDS

Apr. 2016 Contents 1. What’s New

Monthly Topic IR Special Office

…P.1 2. JGB Primary

Market …P.7

3. The Auctions for

Enhanced-Liquidity and JGB Buy-Back

…P.8 4. JGB Secondary

Market …P.9

5. Investor Trends and

JGB Outstanding …P.11

6. Economic and

Financial Trends …P.15

7. Information

…P.16

This Month’s Special!

WHAT’S NEW

Maturity Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16Issue No.

Maturity Date

Issue No.

Maturity Date

Issue No.

Maturity Date

Issue No. - - 9 - 9 -Maturity Date - - 20-Mar-56 - 20-Mar-56 -

Maturity Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17Issue No. 346Maturity Date TBDIssue No. 160Maturity Date TBDIssue No. 54Maturity Date TBDIssue No. 9 - 9 - 9 - 9Maturity Date 20-Mar-56 - 20-Mar-56 - 20-Mar-56 - 20-Mar-56

3052 53

20-Sep-46 20-Dec-46

40

10344 345

20-Sep-26 20-Dec-26

20158 159

20-Sep-36 20-Dec-36

3050 51

20-Mar-46 20-Jun-46

40

10342 343

20-Mar-26 20-Jun-26

20156 157

20-Mar-36 20-Jun-36

※

※

【Issuance of the Inflation-Indexed Bonds on April-June 2016】

•Issuance Amount on April 2016 will be about 400 billion yen. •Reopening method：1 issue in FY2016. April, August, October 2016 and February 2017 issues will be the issue No. 21. (Maturity: March 20, 2026, Reference CPI : December 2015) •Auction method is Dutch-style-price-competitive auction (0.05 yen bidding scale). •Auction Schedule of Buy-back Program of Inflation-Indexed Bonds on April-June 2016.

（※） 1. The auctions will be conducted once in April and June. 2. Issues eligible for the buy-backs will be those from issue number 17 to 21. 3. The Ministry of Finance reserves the right not to accept part or all of bids.

【Maximum Issuance amount for Auctions for Enhanced-liquidity on April-June 2016】

April 2016 May 2016 June 2016

(i) Issues with remaining maturities of 1-5 years 【May】

-2-years (issue numbers 352 to 362) -5-years (issue numbers 105 to 126) -10-years (issue numbers 286 to 314) -20-years (issue numbers 36 to 50)

― Approximately 200 billion yen ―

(ii) Issues with remaining maturities of 5-15.5 years 【April ・ May ・ June】

-10-years (issue numbers 315 to 341) -20-years (issue numbers 51 to 131) -30-years (issue numbers 1 to 5)

Approximately 500 billion yen

Approximately 500 billion yen

Approximately 500 billion yen

(iii) Issues with remaining maturities of 15.5-39 years 【April】

-20-years (issue numbers 132 to 155) -30-years (issue numbers 6 to 49) -40-years (issue numbers 1 to 7)

【June】

-20-years (issue numbers 132 to 155) -30-years (issue numbers 6 to 49) -40-years (issue numbers 1 to 8)

Approximately 400 billion yen ― Approximately

400 billion yen

Details: http://www.mof.go.jp/english/jgbs/topics/press_release/20160328-01e.htm

【Auctions for Buy-backs of 15-Year Floating-rate Bonds in and after April 2016】

Auctions for Buy-backs of 15-Year Floating-rate Bonds in and after April 2016 shall not be conducted.

Auction Month Buy-back amount

April 2016 Approximately 20 billion yen

May 2016 -

June 2016 Approximately 20 billion yen

Total Approximately 40 billion yen

WHAT’S NEW

－2－

<Reference> Summary of minutes of the Meeting of JGB Market Special Participants (65th Round) held on March 23, 2016.

1) Amount of issuance of Inflation-Indexed Bonds (JGBi) in the Apr.–Jun. 2016 quarter, etc. The Financial Bureau explained as follows: ・JGBis market promotion is an important theme in debt management policy from the viewpoint of giving

investors a way to hedge inflation risk. ・In FY2015, the Break-Even Inflation (“BEI”) rate showed a downward trend, and especially at the timing of

every auction, the level of BEI dropped. ・Recently, oil prices started to pick up, but the increment of the BEI rate in Japan is smaller than that in other

developed countries. ・Regarding these circumstances, there are some views that this downtrend is temporary, just reflecting the

economic fundamentals such as a decrease in oil prices. On the other hand, however, there are quite a lot of views that a constant supply-demand gap exists, because the investor base is still limited despite the effort of the authority. Moreover, some pointed out that a liquidity premium has been widened in a situation where a large price fluctuation made investors reluctant to purchase JGBis.

・Based on the circumstances described above, we asked for opinions of the Primary Dealers (“PDs”) and other investors in advance about the issuance of JGBis in April. Many said that in order to continue stable issuance of JGBis, the authority should improve the supply-demand balance and maintain liquidity by reducing the issuance amount and/or implementing Auctions for Buy-backs.

・We propose to reduce the issuance amount in April by ¥100 billion to ¥400 billion, and implement Auctions for Buy-backs of ¥20 billion in April and June respectively. We should suspend Auctions for Buy-back as soon as market liquidity improves, because we consider that Auctions for Buy-backs are temporary measures.

Many of the attendees were of the opinion that the authority’s proposal would present no problem, while some expressed the following opinions: ・We see no problem with the authority’s proposal, but dealers need to firmly explain the idea of the authority to

investors so that they do not misunderstand that the reduction in issuance amount means a decline in the commitment of the authority.

・If the authority reduces the issuance amount, it is possible that investors overseas will worry about the decline in the commitment of the authority, but the authority should give priority to supplying the appropriate amount to the market in order to improve the supply-demand balance.

・It is desirable that the issuance amount of ¥500 billion is maintained and that the Auctions for Buy-backs of ¥100 billion are implemented in April and June. Given that the authority has long increased the issuance amount in order to improve market liquidity so far, if the authority reduces the issuance amount, investors would understand that the authority gives less commitment. What the market participants want is a stable buyer, not a reduction in the issuance amount. If the implementation of Auctions for Buy-backs improves market liquidity, the investors now away from investing JGBis would come back to the market.

2) Auctions for Enhanced-Liquidity in the Apr.-Jun. 2016 quarter The Financial Bureau explained as follows: ・We asked for the opinions in advance of PDs and other investors about the allocation of the issuance amount

in each zone. The majority of the opinions were that, as for the zone of 5-15.5 years remaining to maturity where an auction was implemented every month, the amount of ¥500 billion, the same amount as before, was appropriate.

・There were some opinions that, as for the allocation between the zone of 1-5 years and that of 15.5-39 years remaining to maturity, the issuance amount of the latter zone should be increased when taking the recent strong needs for the super long-term zone into account. However, the majority was of the opinion that the issuance amount should be ¥400 billion for the latter zone and ¥200 billion for the former zone as proposed by the authority.

－3－

Many of the attendees were of the opinion that the authority’s proposal would present no problem, while some expressed the following opinion: ・The proposal by the authority has no problem for the initial allocation for adding the zone of 1-5 years

remaining to maturity. However, it is desirable that the allocation among zones should be reviewed flexibly in the future. As for the zone of 1-5 years remaining to maturity, if the issuance amount is small, investors may feel a lack of market liquidity. I understand that reducing the issuance amount in the zone of 15.5-39 years remaining to maturity is difficult, but the issuance amount in the zone of 1-5 years remaining to maturity should not be reduced below ¥200 billion.

3) Auctions for Buy-backs in the Apr.-Jun. 2016 quarter (regarding the 15-year Floating-Rate Bond) The Financial Bureau explained as follows: ・As for 15-Year Floating-Rate Bonds, the authority has implemented the Auctions for Buy-backs as a crisis

response since December 2007, when the supply-demand balance broke significantly and prices fell largely. After that, prices recovered and under the judgment that the need to implement Auctions for Buy-backs decreased, we have gradually curtailed the purchasing amount since FY2015.

・In particular, in and after February this year, the need to sell 15-Year Floating-Rate Bonds decreased largely, partly because interest rates in all zones of fixed rate bonds fell sharply, which resulted in the low level of 1.21 times the bid at the Outright Purchases of Japanese Government Bonds operation conducted by Bank of Japan (“BOJ”) this February. Furthermore, at the Auctions for Buy-backs conducted by the authority in this March, the maximum difference in purchasing price changed to a significant positive value of 0.55 yen.

・If we continue implementing Auctions for Buy-backs in these circumstances, we may purchase 15-Year Floating-Rate Bonds at a comparatively high price. Thus, we propose that we will suspend the Auctions for Buy-backs in and after this April.

・After that, we will pay attention to the coming market situation. When the supply-demand balance breaks significantly, we would like to resume Auctions for Buy-backs by taking into account the discussions in this meeting.

Many of the attendees were of the opinion that the authority’s proposal would present no problem, while some expressed the following opinion: ・It is desirable to keep on implementing the Auctions for Buy-backs. It is too early to assess market

participants’ potential need to sell only by the results of Outright Purchases of Japanese Government Bonds operation and Auctions for Buy-backs in and after February.

－4－

Breakdown by JGB and T-Bill Holders (Dec.2015)

The Bank of Japan (BOJ) released the Flow of Funds Accounts of the 4th Quarter 2015, and the shares of JGB and T-Bill holders were updated as follows:

MONTHLY TOPIC

－5－

The total amount of JGBs and T-Bills outstanding decreased by 4.1 trillion yen to 1,035.8 trillion yen.

BOJ increased its holdings of JGBs by 16.3 trillion yen to 331.3 trillion yen.

Foreigners increased their holdings share of JGBs in Q4 by 0.8% to 10.6%, reaching above 10% for the first

time.

The balance of JGBs held by domestic Banks in Q4 fell by 12.1 trillion yen to 283.6 trillion yen.

Source: Bank of Japan “Flow of Funds Accounts (Preliminary Figures)”

（The end of Sep. 2015）

Total ¥1,039.9 trillion

（The end of Dec. 2015）

Total ¥1,035.8 trillion

＜JGB Holdings by Foreign Investors＞

Note: ”JGB” includes T-Bills. Source: Bank of Japan

・JGB Holdings by Foreign Investors marked the record high of 109.8 trillion yen.

59.2

63.3 67.9

55.2 55.6

55.0 52.2 49.3 46.4

52.1

58.1 56.5

61.8 67.8

77.0 78.3 76.6 81.8

86.1

82.6 81.9

81.7 78.9

83.8 81.5

83.9 87.2

93.0 98.0

95.6

101.5

109.8

7.4

8.0

8.6

6.9

7.0 6.8 6.4

6.0 5.6

6.0

6.6 6.4

7.1 7.5

8.4 8.5 8.3 8.7

9.1 8.6 8.5 8.4

8.1 8.5

8.2 8.3 8.6

9.1 9.4

9.2 9.8

10.6

20

40

60

80

100

120

1

2

3

4

5

6

7

8

9

10

11

12

Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15

Amount of JGB Holdings (right)

Proportion of JGB Holdings (left)

(trillion yen)

%

%

%

%

%

%

%

%

%

%

%

%

General Government

(ex Public Pensions)

17.4

1.7% Fiscal Loan Fund

0.0

0.0%

BOJ

315.0

30.3%

Banks,etc.

295.7

28.4%

Life and Non-life

Insurance

199.0

19.1%

Public Pensions

52.3

5.0%

Pension Funds

34.8

3.3%

Foreigners

101.6

9.8%

Households

14.5

1.4%

Others

9.6

0.9%

General Government

(ex Public Pensions)

2.4

0.2% Fiscal Loan Fund

0.0

0.0%

BOJ

331.3

32.0%

Banks,etc.

283.6

27.4%

Life and Non-life

Insurance

200.4

19.3%

Public Pensions

51.8

5.0%

Pension Funds

33.5

3.2%

Foreigners

109.8

10.6%

Households

13.6

1.3%

Others

9.3

0.9%

Ministry of Finance officials attended several seminars in March, and participated in useful discussions on the Japanese economy under the negative interest rate policy.

Mr. Manabu Sakai, State Minister of Finance, was invited to a seminar in Kyoto, the beautiful old capital of Japan, and addressed participants from foreign central banks and institutional investors. In his speech, Mr. Sakai pointed out that coordinated efforts by the government and the BOJ have improved Japan’s growth prospects dramatically, and that Abenomics is now progressing to its second stage, where the government endeavors to create a “positive cycle of growth and distribution.” Mr. Sakai also pledged that the government should implement the fiscal consolidation plan steadily and that the negative interest rate policy would never lead to a loosening of fiscal discipline.

Mr. Ichikawa, Deputy Director-General of the Financial Bureau, attended panel discussions in Toronto and New York, both held by the Japan Securities Dealers Association. In addition to the current economic and fiscal situation, he explained the “New Three Arrows” in detail. He stressed that improved income distribution and working conditions through greater support for the working generation would address structural bottlenecks of the Japanese economy, and have a significant impact on its long-term growth perspectives. The importance of labor market reform was echoed

by other panelists, too.

In New York, the IR team visited several institutional investors and had a frank exchange of views on the prospects of the Japanese economy and the impact of the negative interest rate on the JGB market. As the policy change came only a month ago, it was difficult to make a solid, quantitative assessment of the

new policy. That said, the team expressed that the government welcomed the BOJ’s efforts on the price front, and looked forward to seeing a good influence on the economy soon.

IR SPECIAL 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

-6-

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)

1/5/2016 10-year 341 12/20/2025 0.3% 7,106.9 2,186.1 0.258% 0.254% 2.113 211.0 305.1 1/7/2016 30-year 49 12/20/2045 1.4% 2,751.1 737.0 1.226% 1.224% - 62.3 104.9 1/13/2016 10-year Inflation-Indexed Bonds 20 3/10/2025 0.1% 1,232.8 499.9 ▲0.364% - - - 43.0 1/19/2016 5-year 126 12/20/2020 0.1% 9,298.3 2,269.9 0.018% 0.016% 0.000 229.5 86.1 1/21/2016 20-year 155 12/20/2035 1.0% 3,817.0 1,094.4 0.928% 0.924% - 104.5 164.7 1/28/2016 2-year 361 2/15/2018 0.1% 11,052.2 2,282.7 ▲0.014% ▲0.018% 0.110 216.2 207.2 2/2/2016 10-year 341 12/20/2025 0.3% 6,895.5 2,198.5 0.092% 0.078% 1.501 199.9 0.0 2/9/2016 30-year 49 12/20/2045 1.4% 2,211.2 726.4 1.083% 1.068% - 73.2 75.3 2/16/2016 20-year 155 12/20/2035 1.0% 3,826.7 1,092.5 0.792% 0.786% - 106.5 164.6 2/18/2016 5-year 126 12/20/2020 0.1% 8,117.3 2,276.5 ▲0.120% ▲0.138% 0.000 223.3 34.2 2/23/2016 40-year 8 3/20/2055 1.4% 1,221.2 399.7 1.130% - - - 44.9 2/25/2016 2-year 362 3/15/2018 0.1% 9,888.9 2,276.4 ▲0.176% ▲0.183% 0.010 223.3 296.4 3/1/2016 10-year 342 3/20/2026 0.1% 6,997.3 2,187.9 ▲0.015% ▲0.024% 0.973 210.4 358.5 3/8/2016 30-year 50 3/20/2046 0.8% 3,054.8 726.1 0.767% 0.765% - 73.2 118.9 3/10/2016 5-year 127 3/20/2021 0.1% 8,235.9 2,292.2 ▲0.132% ▲0.142% - 207.2 177.5 3/17/2016 20-year 156 3/20/2036 0.4% 3,354.0 1,089.0 0.443% 0.427% - 110.4 161.0 3/25/2016 2-year 363 4/15/2018 0.1% 10,574.2 2,109.0 ▲0.211% ▲0.221% 0.010 190.4 114.1

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)

1/7/2016 3-month 580 4/11/2016 19,841.10 4,090.07 ▲0.0162% ▲0.0214% 379.90 1/8/2016 6-month 581 7/11/2016 14,549.60 3,219.26 ▲0.0425% ▲0.0608% 280.70 1/14/2016 3-month 582 4/18/2016 19,257.50 4,085.65 ▲0.0220% ▲0.0276% 384.30 1/18/2016 1-year 583 1/20/2017 9,930.00 2,281.38 ▲0.0667% ▲0.0727% 218.60 1/21/2016 3-month 584 4/25/2016 20,341.60 4,119.55 ▲0.0180% ▲0.0212% 390.40 1/28/2016 3-month 585 5/2/2016 17,632.50 4,162.05 ▲0.0300% ▲0.0356% 357.90 2/4/2016 3-month 586 5/12/2016 17,271.00 4,147.75 ▲0.1009% ▲0.1308% 332.20 2/8/2016 6-month 587 8/10/2016 12,601.10 3,220.66 ▲0.1603% ▲0.1743% 279.30 2/10/2016 3-month 588 5/16/2016 15,181.51 4,065.91 ▲0.1102% ▲0.1335% 384.00 2/17/2016 1-year 589 2/20/2017 10,087.50 2,325.17 ▲0.1501% ▲0.1601% 174.80 2/18/2016 3-month 590 5/23/2016 16,613.00 4,088.38 ▲0.1022% ▲0.1090% 381.60 2/25/2016 3-month 591 5/30/2016 15,066.60 4,139.24 ▲0.1002% ▲0.1066% 390.70 3/3/2016 3-month 592 6/6/2016 17,295.40 4,117.17 ▲0.0902% ▲0.1018% 382.80 3/8/2016 6-month 593 9/12/2016 13,079.10 3,220.47 ▲0.1196% ▲0.1294% 279.50 3/10/2016 3-month 594 6/13/2016 15,311.80 4,103.33 ▲0.0802% ▲0.0902% 376.60 3/16/2016 1-year 595 3/21/2017 10,496.10 2,284.68 ▲0.1531% ▲0.1641% 215.30 3/17/2016 3-month 596 6/20/2016 16,513.30 4,088.87 ▲0.0973% ▲0.1025% 381.10 3/24/2016 3-month 597 6/27/2016 18,786.10 4,062.55 ▲0.1002% ▲0.1038% 387.40

Auction Calendar for Mar. – May 2016 Auction Date Issue Auction Date Issue Auction Date Issue Auction Date Issue

3/1(Tue) 10-year 3/25(Fri) 2-year 4/21(Thu) 20-year 5/19(Thu) T-Bills (3-month) 3/3(Thu) T-Bills (3-month) 4/5(Tue) T-Bills (3-month) 4/25(Mon) Auctions for Enhanced-liquidity 5/19(Thu) 20-year 3/3(Thu) Auctions for Enhanced-liquidity 4/5(Tue) 10-year 4/27(Wed) T-Bills (3-month) 5/24(Tue) Auctions for Enhanced-liquidity 3/8(Tue) T-Bills (6-month) 4/6(Wed) T-Bills (6-month) 4/27(Wed) 2-year 5/26(Thu) T-Bills (3-month)

3/8(Tue) 30-year 4/7(Thu) T-Bills (3-month) 5/6(Fri) Auctions for Enhanced-liquidity 5/26(Thu) 40-year

3/10(Thu) T-Bills (3-month) 4/7(Thu) Auctions for Enhanced-liquidity 5/10(Tue) T-Bills (3-month) 5/31(Tue) 2-year 3/10(Thu) 5-year 4/12(Tue) 10-year Inflation-Indexed Bonds 5/10(Tue) 10-year 3/16(Wed) T-Bills (1-year) 4/14(Thu) T-Bills (3-month) 5/11(Wed) T-Bills (6-month) 3/17(Thu) T-Bills (3-month) 4/14(Thu) 30-year 5/12(Thu) T-Bills (3-month) 3/17(Thu) 20-year 4/18(Mon) T-Bills (1-year) 5/12(Thu) 30-year 3/23(Wed) Auctions for Enhanced-liquidity 4/19(Tue) 5-year 5/17(Tue) 5-year 3/24(Thu) T-Bills (3-month) 4/21(Thu) T-Bills (3-month) 5/18(Wed) T-Bills (1-year)

Top 10 PDs by Total Purchase in Auctions (Calculated by Duration) (Jul. 2015 ～ Dec. 2015) 1 Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. 6 SMBC Nikko Securities Inc. 2 Nomura Securities Co., Ltd. 7 Merrill Lynch Japan Securities Co., Ltd. 3 Daiwa Securities Co. Ltd. 8 BNP Paribas Securities (Japan) Limited 4 Mizuho Securities Co., Ltd. 9 The Bank of Tokyo-Mitsubishi UFJ, Ltd. 5 Goldman Sachs Japan Co., Ltd. 10 JPMorgan Securities Japan Co., Ltd.

2 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.

－7－

(Until 25 March 2016)

(Until 25 March 2016)

Results of Auctions for Enhanced-Liquidity

Auction Date

Amounts of Competitive

Bids (billion yen)

Amounts of Bids

Accepted (billion yen)

Average Accepted Spread

Highest Accepted Spread

Issues Re-opened

1/15/2016 1,185.6 299.8 +0.015% +0.015% 20-year(132,141) 30-year(6,38,39)

1/26/2016 1,554.9 498.9 ▲0.009% ▲0.007% 10-year(313,314,315,316,317,318,319,322,323,324,325,330) 20-year(57,58,75,76,78,79,80,81,82,92,102,103,105,118,123)

2/4/2016 835.7 299.3 ▲0.007% ▲0.002% 20-year(130,131,133,134,138,140,141,147) 30-year(8,10,20,22,23,24,28,31,36,37,38,39,41,42) 40-year(5,7)

2/12/2016 1,435.1 499.6 +0.007% +0.015% 10-year(313,314,315,316,317,318,319,320,321,322,323,324,325,326,327,328,330,332,336,337) 20-year(49,55,56,58,59,60,61,65,70,78,84,86,87,88,89,91,99,128)

3/3/2016 1,094.4 299.7 ▲0.017% ▲0.010% 30-year(21,22,23,25,26,29,30,31,32,37,41,45,46,48) 40-year(4,5,6,7)

3/23/2016 1,956.7 499.6 ▲0.016% ▲0.008% 10-year(318,320,322,323) 20-year(49)

Target Zones of the Auction for Enhanced-Liquidity for the Fourth Quarter of FY 2015

15-Year Floating-Rate

Auction Date Amounts of

Competitive Bids (billion yen)

Amounts of Bids Accepted

(billion yen)

Average Accepted

Spread (yen)

Highest Accepted

Spread (yen) Issue Numbers

9/7/2015 373.6 60.0 ▲0.916 ▲0.81 23,25,37,38,40,42,45,46,48 11/26/2015 609.4 120.1 ▲1.112 ▲0.51 23,24,38,39,40,41,42,43,44,45,46,47,48 1/22/2016 359.1 60.1 ▲0.193 ▲0.04 11,17,18,21,22,24,34,38,39,40,41,42,43,44,46,47

3 THE AUCTIONS FOR ENHANCED-LIQUIDITY AND JGB BUY-BACK

①Remaining maturity : approx.5‐～15.5‐year

②Remaining maturity : approx.15.5‐～39‐year

Note.1： JL shows 20‐year JGBs. JX shows 30‐year JGBs. JU shows 40‐year JGBs. Outstanding amount is as of the end of December 2015. Note.2： All issues in the graph above will be eligible afterward.

Buy-back Results

(Until 25 March 2016)

(Until 29 February 2016)

－8－

0500

1,0001,5002,0002,5003,0003,5004,0004,5005,0005,5006,0006,5007,0007,500

313

314

JL49

JL50 31

531

6JL

51 317

318

JL52 31

932

0JL

53JL

54 321

322

JL55 32

332

4JL

56JL

57 325

JL58 32

632

7JL

59JL

60 328

JL61 32

9JL

62JL

63 330

331

JL64 33

2JL

65JL

66 333

JL67

JL68

JL69 33

4JL

70JL

71 335

JL72 33

633

7JL

73JL

74 338

JL75

JL76

JL77 33

9JL

78JL

79JL

80 340

JL81

JL82

JL83

JL84

JL85

JL86

JL87

JL88

JL89

JL90

JL91

JL92

JL93

JL94

JL95

JL96

JL97

JL98

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

Amount issued by the Auction for Enhanced-liquidity Outstanding amount in the market (excluding amount issued by the Auction for Enhanced-liquidity)

5 10 15.5

(Remaining maturities)

（billion yen)

0500

1,0001,5002,0002,5003,0003,5004,000

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

12JL

147

JX13

JL14

8JX

14JL

149

JX15

JL15

0JX

16JL

151

JX17

JL15

2JX

18JL

153

JX19

JL15

4JX

20JX

21JX

22JX

23JX

24JX

25JX

26JX

27JX

28JX

29JX

30JX

31JX

32JX

33JX

34JX

35JX

36JX

37JX

38JX

39JX

40JX

41JX

42JX

43JX

44JX

45JX

46JX

47JX

48JU

1JU

2JU

3JU

4JU

5JU

6JU

7

Amount issued by the Auction for Enhanced-liquidity Outstanding amount in the market (excluding amount issued by the Auction for Enhanced-liquidity)（billion yen)

(Remaining maturities)

15.5 20 39

Note: BEI (Japan : old JGBi) is calculated based on the compound interest rate of the old Inflation-Indexed Bonds (issue number 16 with current maturity of 2 years and 4 months) and the 10-Year Bonds (issue number 293 with current maturity of 2 years and 4 months). 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

4 JGB SECONDARY MARKET JGB Yield Curves

Source: Japan Bond Trading Co.,Ltd.

Yields of JGB

Long - Term Interest Rates （10Yr） Source: Bloomberg

Source: Bloomberg

－9－

Yield and Volatility (10Yr)

Break-Even Inflation Rates

Source: Bloomberg, Calculation by the Ministry of Finance

(Until 29 February 2016)

(Until 29 February 2016)

(Until 29 February 2016)

(Until 29 February 2016)

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2015/3/31

2015/6/30

2015/9/30

2015/12/30

2016/1/29

2016/2/29

40353020 25151050-0.2%

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

0%

1%

2%

3%

4%

5%

6%

7%

8%

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

Volatility Yield (right scale)

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

2-year bond 5-year bond 10-year bond

20-year bond 30-year bond 40-year bond

-1%

0%

1%

2%

3%

4%

5%

Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

Japan United States

United Kingdom Germany

-3%

-2%

-1%

0%

1%

2%

3%

4%

Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

BEI (Japan : old JGBi) BEI (Japan : 10 year)

BEI (U.K. : 10 year) BEI (U.S.A. : 10 year)

Short-Term Interest Rates

Source: Bank of Japan ; Japanese Banker Association

JGB Over-the-Counter Trading Volume (TOKYO)

Trading Volume of 10-Year JGB Futures

Repurchase Transactions

－10－

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 29 Feburay 2016)

0

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

Treasury Discount Bills

Medium Term Bonds

Long Term Bonds

0

20

40

60

80

100

120

140

160

180

200

Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

-0.1%

0.0%

0.1%

0.2%

0.3%

0.4%

0.5%

Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

Call Rate (Uncollateralized Overnight)

TIBOR 3-months (Euro-Yen)

Basic Loan Rate

0

500

1,000

1,500

2,000

2,500

Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

Bond-Lending

Bond-Gensaki

Trends in Bank Assets by Types

5 INVESTOR TRENDS AND JGB OUTSTANDING Trends in JGBs Transactions (by investor type)

BOJ Trends

－11－

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

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

Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan

City Banks

Net Purchase

Net Sale

2013 2014 2015 2016

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan

Regional banks

Net Purchase

Net Sale

2013 2014 2015 2016

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan

Life and non-life insurance companies

Net Purchase

Net Sale

2013 2014 2015 2016

-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

Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan

Foreigners

Net Purchase

Net Sale

2013 2014 2015 2016

(unit: trillion yen)(unit: trillion yen)

(unit: trillion yen) (unit: trillion yen)

Apr 2013(Actual)

Feb 2016(Actual)

The pace ofannual increase

Monetary Base 155 359 About 80 trillion

JGBs 98 299 About 80 trillion

CP 1.4 2.4Maintain theoutstanding

balance

Corporate Bonds 2.9 3.2Maintain theoutstanding

balance

ETFs 1.7 7.5 About 3 trillion

J-REITs 0.13 0.29 About 90 billion

Total Assets 175 404 --

0

50

100

150

200

250

300

350

400

450

500

Apr-12 Oct-12 Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16

Total Assets

Monetary Base

JGBs+80 tril yen

+80 tril yen

（tri l l ion yen）

Actual

QQE QQE2

Source: Japan Securities Dealers Association

-5

-4

-3

-2

-1

0

1

2

3

4

Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

Short-term debt securities Long-term debt securities Equity and investment fund shares

Net

Purchase

Net

Sales

-1

-0.5

0

0.5

1

1.5

2

Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

Short-term debt securities Long-term debt securities Equity and investment fund shares

Net

Purchase

Net

Sales

-8

-6

-4

-2

0

2

4

6

8

10

Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

Short-term debt securities Long-term debt securities Equity and investment fund shares

Net

Purchase

Net

Sales

－12－

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 Source: Japan Securities Dealers Association

Outstanding of Repurchase Agreements (by Investor types)

Transactions of Foreign Securities by Residents (by Investor types)

Source: Ministry of Finance

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)

(trillion yen)

Source: Ministry of Finance

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

City Banks Trust Banks Insurance Companies Foreigners

10.6%

29.0%

54.7%

0%

10%

20%

30%

40%

50%

60%

Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15

①Market Share of Foreign Investors (JGB Futures Market)

②Market Share of Foreign Investors (JGB Market)

③JGB Holdings by Foreign Investors

59.2

63.3 67.9

55.2 55.6

55.0 52.2 49.3 46.4

52.1

58.1 56.5

61.8 67.8

77.0 78.3 76.6 81.8

86.1

82.6 81.9

81.7 78.9

83.8 81.5

83.9 87.2

93.0 98.0

95.6

101.5

109.8

7.4

8.0

8.6

6.9

7.0 6.8 6.4

6.0 5.6

6.0

6.6 6.4

7.1 7.5

8.4 8.5 8.3 8.7

9.1 8.6 8.5 8.4

8.1 8.5

8.2 8.3 8.6

9.1 9.4

9.2 9.8

10.6

20

40

60

80

100

120

1

2

3

4

5

6

7

8

9

10

11

12

Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15

Amount of JGB Holdings (right)

Proportion of JGB Holdings (left)

(trillion yen)

%

%

%

%

%

%

%

%

%

%

%

%

JGB and T-Bill Holders

－13－

Breakdown by JGB and T-Bill Holders (Dec. 2015)

Source: Bank of Japan “Flow of Funds Accounts (Preliminary Figures)”

Note.1: "JGB" includes FILP Bonds. "T-Bill" is the sum of "Treasury Bills (TBs)" and "Financial Bills (FBs)" with a maturity of 1 year or less and TBs and FBs have been jointly issued since February 2009.

Note.2: "Banks, etc." includes Japan Post Bank, "Securities investment trust " and "Securities Companies". Note.3: "Life and Nonlife insurance" includes Japan Post Insurance.

(trillion yen)

Breakdown of Outstanding Amount of General Bonds by Remaining Years to Maturity

T-Bill Holders

Total 124.4 trillion yen

JGB Holders

Total 911.3 trillion yen

Total 1,035.8 trillion yen

0

50

100

150

200

250

300

350

400

450

500

550

600

650

700

750

800

FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014

21.7% 20.3% 18.6% 17.0% 17.8% 18.3% 18.2% 17.9% 17.3% 16.4%

13.2% 12.8% 11.5% 11.4%13.0% 12.5% 11.9% 12.4% 12.0% 11.1%

10.9%8.3%

8.2% 8.9%8.5%

7.9% 8.6% 8.1% 7.8% 7.8%8.4%

8.3% 9.0% 9.2%8.4%

9.0%8.6% 8.1% 8.1% 8.2%7.7%

8.5% 8.6% 8.4%

8.8%8.4%

7.8%7.8% 7.8% 7.4%

3.9%4.2% 4.6% 5.3%

5.2%4.7%

4.9%4.4% 4.2% 5.0%

4.2%4.8% 5.6% 5.6%

4.9%5.2%

4.6%4.5%

5.0% 4.3%

4.8% 5.8% 6.0% 5.5%

5.5%4.8%

4.8%5.3%

4.5% 4.5%

6.0% 6.3% 5.9% 6.2%

5.2%5.1%

5.6%4.7%

4.8% 5.2%

5.7% 5.4% 5.5% 5.0%

4.7%5.2%

4.4%4.3%

4.6% 4.2%

12.2% 13.8% 14.5% 14.8%

14.4%

14.4%14.9%

15.6%16.5%

17.7%

1.3% 1.6%2.0% 2.7%

3.6%

4.6%

5.8%6.7%

7.5%8.3% 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）

526.9 531.7 541.5 545.9

594.0

636.3

669.9

705.0

743.9

*years to maturity

774.1

Average

YTM* 5Y4M 5Y9M 6Y1M 6Y3M 6Y5M 6Y8M 7Y0M 7Y3M 7Y7M 8Y0M

Average YTM*

(excluding saving

bonds)5Y3M 5Y8M 6Y1M 6Y4M 6Y6M 6Y10M 7Y1M 7Y5M 7Y8M 8Y0M

General Government

(ex Public Pensions)

2.4

0.2% Fiscal Loan Fund

0.0

0.0%

BOJ

331.3

32.0%

Banks,etc.

283.6

27.4%

Life and Non-life

Insurance

200.4

19.3%

Public Pensions

51.8

5.0%

Pension Funds

33.5

3.2%

Foreigners

109.8

10.6%

Households

13.6

1.3%

Others

9.3

0.9%

General Government

(ex Public Pensions)

2.4

0.3% Fiscal Loan Fund

0.0

0.0%

BOJ

288.3

31.6%

Banks,etc.

265.5

29.1%

Life and Non-life

Insurance

198.0

21.7%

Public Pensions

51.8

5.7%

Pension Funds

33.5

3.7%

Foreigners

48.9

5.4%

Households

13.6

1.5%

Others

9.3

1.0%

General Government

(ex Public Pensions)

0.0

0.0% Fiscal Loan Fund

0.0

0.0%

BOJ

43.0

34.5%

Banks,etc.

18.1

14.6%

Life and Non-life

Insurance

2.4

1.9%

Public Pensions

0.0

0.0%

Pension Funds

0.0

0.0%

Foreigners

60.9

48.9%

Households

0.0

0.0%

Others

0.0

0.0%

Types The amount of redemption at maturity Scheduled redemption date

2-Year Bonds 2,724.2 April 15

Treasury Bill 2,100.0 April 20

Total 4,824.2

Source: Ministry of Finance

Time-to-Maturity Structure of Outstanding JGB（Dec. 2015）

General Bonds Issuance Amount and Outstanding

Note 1: Issuance Amount: revenue basis, FY2004-2014: actual, FY2015: supplementary budget, FY2016: initial budget Note 2: Outstanding: nominal basis, FY2003-2014: actual, FY2015-2016: estimates Source: Ministry of Finance

Market-held Balance of the Inflation-Indexed Bonds (as of February 29, 2016) JGB Holdings by Retail Investors

(trillion yen)

Scheduled redemption of JGB at maturity in April, 2016

Note.1: The figures are based on the outstanding JGBs at the end of February, 2016. 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: The figures do not include "JGB for Retail Investors". Note.4: If the redemption date coincides with bank holiday, the payment of redemption is carried out on the following business day. Note.5: Figures may not sum up to total because of rounding.

(billion yen)

－14－

Source: Ministry of Finance, Bank of Japan (Note) Outstanding "JGBs for retail investors" at Mar-16 is calculated to 〔aggregate issues of ¥46.3trillion〕-〔redemption before maturity of ¥14.4trillion〕-〔aggregate redemption money of ¥21.0trillion〕. Other figures based on Bank of Japan “Flow of Funds” statistics. (Source) Ministry of Finance, Bank of Japan “Flow of Funds”

31.07

113.09

80.39

63.6262.82

56.86

33.40 34.97

39.9939.03

27.98

9.4410.48

11.4314.02

15.70

14.88

17.7217.89

19.7912.48

4.55 3.64 4.555.20 6.21 6.47

5.887.92

9.246.22

0.78 1.28 1.30 1.85 1.82 1.85 1.94 1.740

10

20

30

40

50

60

70

80

90

100

110

120

15 16 17 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 47 48 49 50 51 52 53 54

(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 3 months

499.0526.9 531.7 541.5 545.9

594.0636.3

669.9705.0

743.9 774.1 812.1837.8119.9

136.8 135.6 124.6 127.1

142.4 143.1

163.1 163.3 153.6 158.0 152.7

145.7

100

200

300

400

500

600

700

800

900

0

30

60

90

120

150

180

04 05 06 07 08 09 10 11 12 13 14 15 16

Outstanding (right-hand scale) Issuance Amount (left-hand scale)

0100200300400500600700800900

1,0001,1001,2001,3001,4001,5001,6001,7001,8001,9002,0002,1002,200

7 8 9 10 11 12 13 14 15 16 17 18 19 20

(billion yen)

(issue number)

Outstanding amount (excl. BOJ holding)

BOJ holding

Old type(without floor)

Market BOJ TotalOld 1,004 1,098 2,102New 4,504 195 4,700

0.4 0.7 1.0

2.0

3.3

4.8

6.5

8.4

10.1

12.4

14.0 15.3

17.1

18.7

20.7

22.0 23.2

24.1

25.8 26.5 26.7 26.8

27.4 27.5 27.6 27.5 27.7 27.7 27.2 27.3 27.4 27.2

25.8 25.2

24.1 23.4

22.9 22.3

21.0 20.3

19.7 19.2

18.2 17.8 17.4 16.8

15.9 14.9

13.8 12.6

11.9 11.2 11.0

12.3 12.5 12.4 13.4

14.6

15.9

18.0

20.1

21.8

24.5 25.7

26.9 28.0

29.1

31.4 32.3

33.4 33.6

35.4 36.0 36.3

35.3 35.8

36.7 36.0 35.6 35.5 35.0

34.4 34.4 34.1

33.0

31.1 30.4

29.5 28.5

27.7 27.0 25.5

24.5 24.2

22.9 22.0

21.4 21.0 20.4

19.3 18.4

16.9

15.4 14.5

13.6 13.4

2.1%2.0%

2.0%2.1%2.2%2.3%

2.6%2.9%

3.0%3.2%

3.4%3.5%

3.7%3.8%

4.1%4.2%

4.3%4.4%4.6%4.6%

4.5%4.5%4.5%

4.6%4.5%

4.4%4.3%4.3%4.1%

4.0%3.9%

3.8%3.6%

3.4%3.2%

3.1%3.0%2.9%

2.7%2.6%2.5%

2.4%2.2%

2.2%2.1%2.0%

1.9%1.8%

1.6%1.5%1.4%

1.3%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

0

5

10

15

20

25

30

35

40

45

Mar - 03 Mar - 04 Mar - 05 Mar - 06 Mar - 07 Mar - 08 Mar - 09 Mar - 10 Mar - 11 Mar - 12 Mar - 13 Mar - 14 Mar - 15 Mar - 16

(trillion yen)

Total JGBs held by retail investors (left)

Outstanding "JGBs for retail investors" (left)

Ratio of JGBs held by retail investors （right）

Dec - 12

－15－

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 Japan "Orders Received for Machinery"

(trillion yen)

6 ECONOMIC AND FINANCIAL TRENDS

Source: Bank of Japan "Monetary Base"

Source: Bank of Japan "Tankan"

-70%

-60%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

Jan-

08

May

-08

Sep

-08

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

(Diffusion index)

Large enterprises/Manufacturing

Large enterprises/Non-Manufacturing

Small enterprises/Manufacturing

Small enterprises/Non-Manufacturing

0.4

0.5

0.6

0.7

0.8

0.9

1

1.1

1.2

1.3

1.4

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%

Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

（ratio）Jan, 20161.28times

Jan, 20163.2％

Aug, 20090.42times

Jul, 20095.5％

Job opening-to-application ratio(right scale)

Unemployment rate(left scale)

6.5

3.3 3.7

1.4 2.3

3.2 4.3

3.8

5.4 4.4 5.5

4.1 4.3

1.8

3.3

0.9

2.1

1.1

1.6

-0.0

1.6 2.2

1.6

-1.4 -0.9

0.4

1.6 1.5

4.4

3.8

4.9

3.6

-8

-6

-4

-2

0

2

4

6

8

10

2008

Q1

2008

Q2

2008

Q3

2008

Q4

2009

Q1

2009

Q2

2009

Q3

2009

Q4

2010

Q1

2010

Q2

2010

Q3

2010

Q4

2011

Q1

2011

Q2

2011

Q3

2011

Q4

2012

Q1

2012

Q2

2012

Q3

2012

Q4

2013

Q1

2013

Q2

2013

Q3

2013

Q4

2014

Q1

2014

Q2

2014

Q3

2014

Q4

2015

Q1

2015

Q2

2015

Q3

2015

Q4

Primary Income Trade BalanceServices Secondary IncomeCurrent Account

3.7

-1.6 -1.8

-0.3

4.02.7

2.1

-0.3

5.0

-7.9

-2.6

2.5

4.2

-1.4

1.3

-1.4

-14.0

-12.0

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ

2012 2013 2014 2015

(％)

Private Demand Public Demand

Foreign Demand Real GDP

Annualized rate of Change from the previous quarter (Seasonally adjusted)

(CY)

0

50

100

150

200

250

300

350

400(trillion yen)

Banknotes in Circulation

Coins in Circulation

Current Account Balances

70

80

90

100

110

120

130

140

150

160

Jan-

08Ap

r-08

Jul-0

8O

ct-0

8Ja

n-09

Apr-

09Ju

l-09

Oct

-09

Jan-

10Ap

r-10

Jul-1

0O

ct-1

0Ja

n-11

Apr-

11Ju

l-11

Oct

-11

Jan-

12Ap

r-12

Jul-1

2O

ct-1

2Ja

n-13

Apr-

13Ju

l-13

Oct

-13

Jan-

14Ap

r-14

Jul-1

4O

ct-1

4Ja

n-15

Apr-

15Ju

l-15

Oct

-15

Jan-

16

(2010 average=100・Seasonally Adjusted Index)

Production Shipments

Inventory Inventory Ratio

500

600

700

800

900

1,000

1,100

Jan-

08

Apr-

08

Jul-0

8

Oct

-08

Jan-

09

Apr-

09

Jul-0

9

Oct

-09

Jan-

10

Apr-

10

Jul-1

0

Oct

-10

Jan-

11

Apr-

11

Jul-1

1

Oct

-11

Jan-

12

Apr-

12

Jul-1

2

Oct

-12

Jan-

13

Apr-

13

Jul-1

3

Oct

-13

Jan-

14

Apr-

14

Jul-1

4

Oct

-14

Jan-

15

Apr-

15

Jul-1

5

Oct

-15

Jan-

16

(billion yen)

Monthly Quarter (Mean)

0.8%

0.3%

-1

0

1

2

3

4

Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16

(%)

CPI

CPI excluding food (excludingalcohilic beverages) and energy

Change from the previous year

Apr.4, 2013BOJ released QQE

English Publications on JGBs Frequency URL Debt Management

Message from the Financial Bureau As needed http://www.mof.go.jp/english/jgbs/debt_management/message.htm

About JGBs As needed http://www.mof.go.jp/english/jgbs/debt_management/guide.htm

About the Debt Management Policy As needed http://www.mof.go.jp/english/jgbs/debt_management/about.htm

JGB Issuance Plan As needed http://www.mof.go.jp/english/jgbs/debt_management/plan/index.htm

Auction Calendar

Auction Calendar Monthly http://www.mof.go.jp/english/jgbs/auction/calendar/index.htm

Historical Data of Auction Results Each Auction http://www.mof.go.jp/english/jgbs/auction/past_auction_results/index.html

Topics

Product Characteristics of the JGB As needed http://www.mof.go.jp/english/jgbs/topics/bond/index.html

Treasury Discount Bills (T-Bills) Annual http://www.mof.go.jp/english/jgbs/topics/t_bill/index.htm

Japanese Government Guaranteed Bonds Annual http://www.mof.go.jp/english/jgbs/topics/gov_guaranteed_bonds/index.htm

Interest Rate Swap Semiannual http://www.mof.go.jp/english/jgbs/topics/swap/index.htm

Taxation of Government Bonds As needed http://www.mof.go.jp/english/jgbs/topics/taxation/index.htm

For Individual Investors As needed http://www.mof.go.jp/english/jgbs/topics/individual/index.htm

Data

Central Government Debt Quarterly http://www.mof.go.jp/english/jgbs/reference/gbb/index.htm

Interest Rate Daily http://www.mof.go.jp/english/jgbs/reference/interest_rate/index.htm

STRIPS Monthly http://www.mof.go.jp/english/jgbs/reference/jgbstat/index.htm

Dialogue with the market

Advisory Councils on Government Debt Management Each Meeting http://www.mof.go.jp/english/about_mof/councils/gov_debt_management/index.html

Meeting of JGB Market Special Participants Each Meeting http://www.mof.go.jp/english/about_mof/councils/jgbsp/index.html

Meeting of JGB Investors Each Meeting http://www.mof.go.jp/english/about_mof/councils/jgb_investor/index.html

Publications

Debt Management Report Annual http://www.mof.go.jp/english/jgbs/publication/debt_management_report/index.htm

JGB Newsletter Monthly http://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

7 INFORMATION

To subscribe to our Newsletter mailing list, please email: JGB-IR@mof.go.jp

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