japanese government bonds€¦ · the next jgbi issuance auction in august 2016 is to be reopened...

What’s New ⇒ 1. Recent developments in 10-year Inflation-indexed JGBs (JGBi) 2. The 41st meeting of the Advisory Council on Government Debt Management Monthly Topic ⇒ 1. Wage growth is expected to continue

2. The number of foreign visitors reached over 20 million in FY2015

WHAT’S NEW Th

1. Recent developments in 10-year Inflation-indexed JGBs (JGBi) On April 12, the MOF implemented an issuance auction for JGBi, with the issuance

amount decreased to 400 billion yen (from 500 billion yen). The MOF also bought back 20 billion yen (face value) of JGBi in a buy-back auction on April 22. The MOF had decided to implement both measures with a view to improving the supply-demand balance and maintaining liquidity in the JGBi secondary market, based on the discussions at the Meeting of JGB Market Special Participants and the Meeting of JGB investors held in March. Market participants reportedly viewed the results of the auctions positively and noted that the auction price was beyond market expectations and higher than the level seen in the secondary market in the morning session.

Details of Auction Results of 10-year JGBi

Results of Auction for JGBi Buy-back

The next JGBi issuance auction in August 2016 is to be reopened as Issue Number 21. Its issuance amount may be adjusted flexibly in response to market developments and investor demand, based on discussions with market participants.

The Ministry of Finance www.mof.go.jp

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

May 2016 Contents 1. What’s New

Monthly Topic IR Special Office

…P.1 2. JGB Primary

Market …P.6

3. The Auctions for

Enhanced-Liquidity and JGB Buy-Back

…P.7 4. JGB Secondary

Market …P.8

5. Investor Trends and

JGB Outstanding …P.10

6. Economic and

Financial Trends …P.14

7. Information

…P.15

This Month’s Special!

WHAT’S NEW

IssueNumber

AuctionDate Issue Date Nominal

Coupon

OfferingAmounts

(billion yen)

Amounts ofCompetitive Bids

(billion yen)

Amounts ofBids

Accepted(billion yen)

Bid-to-cover ratio

Yield at theLowest

AcceptedPrice

LowestAcceptedPrice (per100 yen)

BEI

18 4/3/2014 4/10/2014 0.10% 400.0 1,157.3 399.8 2.89 ▲ 0.671% 108.20 1.350

18 7/8/2014 7/10/2014 0.10% 400.0 1,017.9 400.0 2.54 ▲ 0.952% 111.20 1.291

19 10/8/2014 10/10/2014 0.10% 500.0 1,056.2 499.9 2.11 ▲ 0.658% 108.05 1.172

19 1/8/2015 1/13/2015 0.10% 500.0 1,486.8 499.8 2.97 ▲ 0.501% 106.10 0.776

20 5/8/2015 5/12/2015 0.10% 500.0 1,326.4 499.8 2.65 ▲ 0.589% 107.20 1.094

20 7/7/2015 7/9/2015 0.10% 500.0 1,166.0 500.0 2.33 ▲ 0.555% 106.70 1.001

20 11/10/2015 11/12/2015 0.10% 500.0 1,106.4 499.8 2.21 ▲ 0.459% 105.45 0.740

20 1/13/2016 1/15/2016 0.10% 500.0 1,232.8 499.9 2.47 ▲ 0.364% 104.40 0.505

21 4/12/2016 4/14/2016 0.10% 400.0 1,135.0 400.0 2.84 ▲ 0.376% 104.90 0.359

Auction DateAmounts of

Competitive Bids(billion yen)

Amounts ofBids Accepted

(billion yen)

AverageAccepted Spread

(yen)

HighestAccepted Spread

(yen)

4/22/2016 145.9 20.0 ▲0.356 ▲0.26

http://www.mof.go.jp/

2. The 41st meeting of the Advisory Council on Government Debt Management The 41st Meeting of the Advisory Council on Government Debt Management was held on April 26, 2016. The

agenda was as follows: 1) Market Trends after Introduction of BOJ’s “QQE with a Negative Interest Rate” (presentation by council

member Sakashima of Daiwa Securities Co. Ltd.) 2) Debt Management Policies; Recent Discussion Topics (presentation by council member Koeda of Waseda

University) In addition, the MOF gave a supplementary explanation about debt management policy, using the following Fig. 1–6.

On the average maturity of JGBs on a market-issuance (flow) basis and outstanding-amount (stock) basis

A basic principle of debt-management policy is to identify an appropriate maturity structure of bonds in

consideration of the trade-off between financing costs and rollover risk. Based on this principle, the MOF has

extended the (weighted) average maturity of JGBs in formulating annual debt issuance plans, taking into account

the current low interest rate environment.

In our view, the average maturity on a stock (JGB outstanding) basis is important from the standpoint of the debt

management policy of controlling interest rate risk, though the discussions have thus far been focused on the

average maturity on a flow (JGB market issuance) basis.

However, if the MOF were to continue to formulate a JGB issuance plan each year on the assumption that the

average maturity on a flow basis should be extended, it would be unable to flexibly respond to market demand at

that point in time, leading to concerns about an increase in financing costs. There is also the risk that market

confidence in debt management policy could be undermined if the MOF were forced to shorten the average

maturity drastically when the market environment changed.

Moreover, the impact of a change in the maturity structure of JGB market issuance each year on the average

maturity on a stock basis has been decreasing, as the outstanding amount of JGBs has increased. Calculations

suggest that the average maturity on a stock basis would be stable in the near future even in the case where it is

maintained at the current level on a flow basis.

(Note) If the MOF continued to issue JGBs in the same amount and maturity distribution as in FY2016, the

average maturity on a stock basis would continue to lengthen for at least ten years.

Therefore, we are of the view that it would henceforth be appropriate to not necessarily stick to extending the

average maturity of JGB market issuance each year; rather, we intend to formulate JGB issuance plans with

careful judgment on the adequate level of average maturity on a stock basis, paying close attention to, among

others, the structure of JGB holders and the liability components of main JGB investors.

WHAT’S NEW

－2－

WHAT’S NEW

8 years and 9 months









2016

2015

2014

2013

2012

2011

2010

2009

2008

(Note 1) Up to FY2014; Actual (Note 2) Outstanding amount consists of only General Bonds

(i.e., FILP Bonds are excluded.)

（at the end of FY）

（Initial）

（Supplementary Budget）

(estimate)

(estimate) 9 years and 2 months









2016

2015

2014

2013

2012

2011

2010

2009

2008

（year）(Note) Up to FY2014; Actual

（Initial）

（Supplementary Budget）

（FY）

Outstanding amount (Stock-basis) Market issuance（Flow-basis）

8.71 8.98

▲0.94 1.51

▲0.30

6.0

6.5

7.0

7.5

8.0

8.5

9.0

9.5

end of FY2016 Redemption andnatural fall

New issuance Increase inoutstanding amount

end of FY2017

(year)

FY 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Japan 6.7 7.0 7.1 7.3 7.3 7.6 7.8 7.8 7.9 8.5 9.0

U.S. 4.6 5.7 6.0 6.1 6.0 6.9 7.3 7.6 7.3 7.3 7.4

U.K. 23.1 21.0 20.5 14.5 15.9 16.7 18.4 17.5 19.9 18.7 20.0

Germany 7.2 7.4 7.0 6.6 6.4 6.8 6.5 7.3 6.7 6.9 7.2

France 9.9 9.5 9.5 8.5 8.3 9.3 7.7 8.0 7.8 8.6 9.0

Source : Calculation by Ministry of Finance, based on the data published from each country's debt management office.

12

14

16

18

20

22

24

U.K.

4

5

6

7

8

9

10

Japan U.S. Germany France

10

(year)

Fig.1 The Average Maturity of JGBs

Fig.2 Breakdown of factors in average maturity

Fig.3 Breakdown of factors affecting average maturity (based on the assumption that the same issuance as FY2016 is iterated in FY2017)

Fig.5 Comparison of average maturity of foreign countries (stock basis)

Fig.6 Comparison of average maturity of foreign countries (flow basis)

－3－

Note: Up to FY2014 is actual. FY2015 is an actual prospect. FY2016 is estimated on the basis of JGB Issuance Plan for FY2016. FY2017 to FY2019 are the estimations on the premise that the issuance at FY2016 is iterated until FY2019.

5.40 5.70 5.95 6.34

6.667.15 7.47 7.77 8.00

1.54 1.53

1.59 1.58

1.72

1.57 1.51

1.45 1.41

22.2%21.1% 21.1%

19.9%

20.5%

18.0%16.8%

15.8%14.9%

0%

5%

10%

15%

20%

25%

0

1

2

3

4

5

6

7

8

9

10

平成23年平成24年平成25年平成26年平成27年平成28年平成29年平成30年平成31年

当年度フロー分

前年末残高分

当年度フロー分の寄与度(右軸)

(year)Estimation

6.947.22

7.54

7.92

8.388.71

9.22 9.41

（end of FY）

8.98

Issuance flowOutstanding amount at the end of previous year Contribution of issuance flow

2011 2012 2013 2014 2015 2016 2017 2018 2019

3

4

5

6

7

8

9

10

10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20%

(flow

bas

is a

vera

ge m

atur

ity)

(gross issuance amount / outstanding amount)

(year)

If "Gross issuance amount / Outstanding amount" at current level is 16%,"flow basis average maturity : 9 (years)" is fixed for a while, and"Gross issuance amount / Outstanding amount" decreases by 1%,

→ Approximately 5 years 【=（16-11）/1】stock basis average maturity keeps on lengthning.

(Note 1) Outstanding amount is assumed to be fixed.(Note 2) If outstanding amount increased (decreases), "-1" in above equation would become smaller (larger) .

Gross issuance amountOutstanding amount

Change of stock basis average maturity ≈ Flow basis average maturity × ― 1 (year)

FY 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Japan 5.7 5.8 5.3 5.1 5.0 5.0 4.9 5.0 5.2 5.7 6.0 6.3 6.5 6.8 7.1 7.4 7.6 8.0

U.S. 5.2 5.6 5.7 5.8 5.7 5.2 4.8 4.6 4.5 4.6 4.7 4.3 4.4 4.9 5.2 5.4 5.4 5.7

U.K. 9.8 10.3 10.5 11.1 11.3 11.4 11.8 12.1 13.1 13.9 14.5 14.5 14.2 14.1 15.2 15.2 15.3 16.2

Germany 5.2 6.0 5.7 6.1 5.9 6.0 6.2 6.3 6.3 6.3 5.9 6.3 5.9 6.0 6.2 6.4 6.4 6.6

France 6.2 6.3 6.3 6.2 6.0 5.7 5.6 6.1 6.6 7.0 7.1 6.8 6.6 7.1 7.2 7.0 7.0 7.0

Source : OECD, calculation by Ministry of Finance, based on the data published from each country's debt management office.

4

5

6

7

8 Japan U.S. Germany France

（年）

9

11

13

15

17

U.K.

(year)

Fig.4 Relation between stock basis average maturity and flow basis average maturity (diagram)

1. Wage growth is expected to continue. In Japan, there are annual wage negotiations known as

"Shunto" (the “Spring Offensive”) that take place in spring. Following this year’s Shunto, the average monthly wage increase is 2.06% based on the extra survey as of April 14. It is slightly lower growth than the previous year but high growth rates are still being maintained. Moreover, there is higher wage growth in SMEs (small-

and medium-size enterprises) and for part-time employees than in the previous year. It can be seen that this movement reflects the

broad-based recovery of corporate earnings and the improvement of the employment situation. This trend will encourage consumption and is also essential in order to overcome deflation and achieve sustainable economic growth.

2. The number of foreign visitors reached over 20 million in FY2015 As developing the tourism industry is one of the

growth strategies under the Abenomics Policy, the Japanese government has taken measures to increase the number of foreign tourists visiting Japan. According to the Japan National Tourism

Organization, the number of foreign visitors to Japan in fiscal year 2015 rose 45.6 percent from the previous year to 21.4 million. The target of attracting 20 million foreign visitors a year by 2020 has been achieved already.

Based on this rapid increase, the government set a new target of 40 million for 2020 in March 2016.

7.6 8.6

7.8 7.2 8.3

6.4

8.7

11.0

14.7

21.4

0

5

10

15

20

25

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

(million)

(FY)

1.53%

1.76%

1.88%1.91%

1.0%

1.2%

1.4%

1.6%

1.8%

2.0%

2013 2014 2015 2016

(YoY)

1.35%

1.16%

2.01%

2.22%

1.0%

1.2%

1.4%

1.6%

1.8%

2.0%

2.2%

2.4%

2013 2014 2015 2016

(YoY)

1.5%

1.8%

2.0%

2.3%

2.5%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

2.20%

1.71%1.72%1.71%1.67%1.67%

1.88%1.86%

(YoY)

2.07%

2.06%

MONTHLY TOPIC

(Source) Japan National Tourism Organization

－4－

Change in average wages related to Shunto (The enterprises with less than 300 employees)

Source: Japanese Trade Union Confederation

Note1: All the figures are calculated based on “the number of union members weighted average growth”.

Note2: The figure of 2016 is cited from the extra survey as of April 14 while the others are cited

from the result of final survey.

Change in average wages related to Shunto (All enterprises)



Note2: The figure of 2016 is cited from the extra survey as of April 14 while the others are cited


Change in average wages related to Shunto (Part-time employment)



Note2: The figure of 2016 is cited from the 3rd survey as of April 1 while the others are cited


Foreign visitors

Our IR office conducts international cooperation with foreign authorities in Asian and

other countries in addition to IR activity. Based on a request from Japan International Cooperation Agency (JICA) and these authorities, Mr. Ninomiya, Deputy Director of the Debt Management Policy Division, explained our experience in debt management policies, the history of JGB's development, and the current status relating to JGBs to them. They eagerly asked many questions, such as about the JGB Market Special Participants scheme and how JGB products were developed before the mid-1990s, because they hope to foster bond markets in their countries. We have received encouragement from them and hope that our experience contributes to the development of their countries.

As you know, Japan’s Prime Minister Abe has advanced the “three arrows” strategy since his second cabinet started in 2012. Do you know why P.M. Abe quoted the phrase “three arrows” in the first place? The "Three arrows" story is a famous anecdote in Japan which is believed to have been told by Mori Motonari (see the picture on the right) to his three sons. Motonari was a Daimyo (Japanese feudal lord) in the 16th century (about 450 years ago) who dominated the region including what is now Yamaguchi Prefecture, Mr. Abe’s hometown. He gathered his three sons together and gave each one an arrow, and told them to break it. They could do it easily. He then gave them a bundle of three arrows, and told them to break it at once. It couldn't be done. He told them, "Though you were able to break one arrow easily, it is difficult to break a bundle of three arrows at once. If you three were united to tackle difficult tasks like this, you could overcome them and help the clan to flourish as a result." The bundle of his sons was famous for its strong unity in Japanese history. The Abe cabinet has made progress in overcoming deflation and revitalizing the economy more strongly by bundling the “three” new policies announced last September.

IR SPECIAL OFFICE

If you have any questions regarding the contents of this newsletter, please do not hesitate to contact us at: [email protected]

-5-

mailto:[email protected]

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)


Non-price- competitive Auction Ⅱ (billion yen)

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 4/5/2016 10-year 342 3/20/2026 0.1% 8,495.4 2,184.6 ▲0.064% ▲0.069% 0.903 213.8 140.3 4/12/2016 10-year Inflation-Indexed Bonds 21 3/10/2026 0.1% 1,135.0 400.0 ▲0.376% - - - 35.6 4/14/2016 30-year 50 3/20/2046 0.8% 2,474.4 730.0 0.411% 0.388% - 69.8 28.5 4/19/2016 5-year 127 3/20/2021 0.1% 9,521.7 2,185.0 ▲0.222% ▲0.226% 0.300 213.8 358.9 4/21/2016 20-year 156 3/20/2036 0.4% 3,565.0 1,002.9 0.272% 0.262% - 96.4 8.7

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


Non-price- competitive Auction Ⅰ (billion yen)

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 4/5/2016 3-month 598 7/4/2016 14,887.10 4,017.26 ▲0.0850% ▲0.0949% 332.72 4/6/2016 6-month 599 10/11/2016 16,079.20 3,195.08 ▲0.1574% ▲0.1713% 304.90 4/7/2016 3-month 600 7/11/2016 20,394.90 4,004.07 ▲0.1082% ▲0.1214% 345.90 4/14/2016 3-month 601 7/19/2016 20,985.20 3,971.28 ▲0.1447% ▲0.1689% 388.70 4/18/2016 1-year 602 4/20/2017 12,981.20 2,282.19 ▲0.2045% ▲0.2155% 217.80 4/21/2016 3-month 603 7/25/2016 24,183.70 4,016.48 ▲0.1924% ▲0.2044% 393.50

Auction Calendar for Apr. – Jun. 2016 Auction Date Issue Auction Date Issue Auction Date Issue Auction Date Issue

4/5(Tue) T-Bills (3-month) 4/25(Mon) Auctions for Enhanced-liquidity 5/19(Thu) 20-year 6/15(Wed) T-Bills (3-month) 4/5(Tue) 10-year 4/27(Wed) T-Bills (3-month) 5/24(Tue) Auctions for Enhanced-liquidity 6/17(Fri) Auctions for Enhanced-liquidity 4/6(Wed) T-Bills (6-month) 4/27(Wed) 2-year 5/26(Thu) T-Bills (3-month) 6/21(Tue) Auctions for Enhanced-liquidity

4/7(Thu) T-Bills (3-month) 5/6(Fri) Auctions for Enhanced-liquidity 5/26(Thu) 40-year 6/23(Thu) T-Bills (3-month)

4/7(Thu) Auctions for Enhanced-liquidity 5/10(Tue) T-Bills (3-month) 5/31(Tue) 2-year 6/23(Thu) 20-year 4/12(Tue) 10-year Inflation-Indexed Bonds 5/10(Tue) 10-year 6/2(Thu) T-Bills (3-month) 6/28(Tue) 2-year 4/14(Thu) T-Bills (3-month) 5/11(Wed) T-Bills (6-month) 6/2(Thu) 10-year 6/30(Thu) T-Bills (3-month) 4/14(Thu) 30-year 5/12(Thu) T-Bills (3-month) 6/7(Tue) 30-year 4/18(Mon) T-Bills (1-year) 5/12(Thu) 30-year 6/8(Wed) T-Bills (6-month) 4/19(Tue) 5-year 5/17(Tue) 5-year 6/9(Thu) T-Bills (3-month) 4/21(Thu) T-Bills (3-month) 5/18(Wed) T-Bills (1-year) 6/9(Thu) 5-year 4/21(Thu) 20-year 5/19(Thu) T-Bills (3-month) 6/14(Tue) T-Bills (1-year)

Top 10 PDs by Total Purchase in Auctions (Calculated by Duration) (Oct. 2015 ～ Mar. 2016) 1 Daiwa Securities Co. Ltd. 6 SMBC Nikko Securities Inc. 2 Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. 7 Merrill Lynch Japan Securities Co., Ltd. 3 Nomura Securities Co., Ltd. 8 Goldman Sachs Japan Co., Ltd. 4 Mizuho Securities Co., Ltd. 9 Morgan Stanley MUFG Securities Co., Ltd. 5 BNP Paribas Securities (Japan) Limited 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.

－6－

(Until 25 April 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

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)

4/7/2016 1,047.4 398.5 ▲0.019% ▲0.011% 30-year(8,14,15,20,21,22,24,25,27,28,29,30,31,32,33,34,35,36,39,40,42,45,46,49) 40-year(1,2,5,7)

4/25/2016 1,833.6 499.7 +0.029% +0.036% 10-year(315,316,318,320,321,322, 323,324,326) 20-year(51,58,75) 30-year(1)

Target Zones of the Auction for Enhanced-Liquidity for the First Quarter of FY 2016

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

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 3/7/2016 187.3 60.2 +0.117 +0.55 12,13,14,15,16,18,28,31,32,33,34,36,37,38,39,41,47

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

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

③Remaining maturity : approx.15.5‐～39‐year

Note.1： 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 2016. Note.2： All issues in the graph above will be eligible afterward.

Buy-back Results


(Until 31 March 2016)

－7－

②Remaining maturity : approx.5‐～15.5‐year

0500

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

315

316

JL51 31

731

8JL

52 319

320

JL53

JL54 32

132

2JL

55 323

324

JL56

JL57 32

5JL

58 326

327

JL59

JL60 32

8JL

61 329

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

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

JL13

0JL

131

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

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

JN35

2

JN35

3

JS10

5

286

287

JN35

4

JN35

5

JN35

6

JS10

6

288

JL36

JL37

JN35

7

JN35

8

JN35

9

JS10

7

JS10

8

289

JN36

0

JN36

1

JN36

2

JS10

9

JS11

0

JS11

1

290

291

292

JL38

JL39

JS11

2

JS11

3

293

294

295

JS11

4

JS11

5

296

JL40

JS11

6

297

298

JS11

7

299

300

JL41

JL42

JS11

8

JS11

9

301

302

JS12

0

JS12

1

303

304

JL43

JS12

2

305

JS12

3

306

307

JL44

JL45

JS12

4

308

309

JL46

JS12

5

310

311

JL47

JS12

6

312

JL48 31

3

314

JL49

JL50

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

1 2 5


（billion yen)

0500

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

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

20JL

155

JX21

JX22

JX23

JX24

JX25

JX26

JX27

JX28

JX29

JX30

JX31

JX32

JX33

JX34

JX35

JX36

JX37

JX38

JX39

JX40

JX41

JX42

JX43

JX44

JX45

JX46

JX47

JX48

JX49

JU1

JU2

JU3

JU4

JU5

JU6

JU7

JU8

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


-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

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

-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-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%

2015/6/302015/9/302015/12/302016/1/292016/2/292016/3/31

40353020 25151050

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 3 months) and the 10-Year Bonds (issue number 293 with current maturity of 2 years and 3 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

－8－

Yield and Volatility (10Yr)

Break-Even Inflation Rates

Source: Bloomberg, Calculation by the Ministry of Finance





-3%

-2%

-1%

0%

1%

2%

3%

4%


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

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

-1%

0%

1%

2%

3%

4%

5%


Japan United States

United Kingdom Germany

0

500

1,000

1,500

2,000

2,500

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

Bond-Lending

Bond-Gensaki

0

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200


Treasury Discount Bills

Medium Term Bonds

Long Term Bonds

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

－9－

Source: Japan Securities Dealers Association

Source: Tokyo Stock Exchange (until Mar.2014), Osaka Exchange (from Apr. 2014)


(trillion yen)

(trillion yen)

(trillion yen)


-0.1%

0.0%

0.1%

0.2%

0.3%

0.4%

0.5%


Call Rate (Uncollateralized Overnight)

TIBOR 3-months (Euro-Yen)

Basic Loan Rate

0

20

40

60

80

100

120

140

160

180

200


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


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


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


Foreigners

Net Purchase

Net Sale

2013 2014 2015 2016

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

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

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

（trillion yen）

Actual

QQE QQE2Apr 2013(Actual)

Mar 2016(Actual)

The pace ofannual increase

Monetary Base 155 376 About 80 trillion

JGBs 98 302 About 80 trillion

CP 1.4 2.0Maintain theoutstanding

balance

Corporate Bonds 2.9 3.2Maintain theoutstanding

balance

ETFs 1.7 7.6 About 3 trillion

J-REITs 0.13 0.29 About 90 billion

Total Assets 175 405 --

0

10

20

30

40

50

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

180190200210220230240

0

20

40

60

80

100

120


160

180

200

Trends in Bank Assets by Types

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

BOJ Trends

－10－

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


-5

-4

-3

-2

-1

0

1

2

3

4


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



Net

Purchase

Net

Sales

-8

-6

-4

-2

0

2

4

6

8

10



Net

Purchase

Net

Sales

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%


City Banks Trust Banks Insurance Companies Foreigners

10.6%

29.0%

54.7%

0%

10%

20%

30%

40%

50%

60%

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

－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 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)


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

－12－

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


2.4


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


0.0


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 2,846.7 May 15

Treasury Bill 2,346.7 May 20

Total 5,193.4


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 March 31, 2016) JGB Holdings by Retail Investors

(trillion yen)

Scheduled redemption of JGB at maturity in May 2016

Note.1: The figures are based on the outstanding JGBs at the end of March, 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)

－13－

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)

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

0100200300400500600700800900

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

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

(billion yen)

(issue number)

Outstanding amount (excl. BOJ holding)

BOJ holdingOld type

(without floor)

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 2.1

1.7

-1.0 -0.5

0.9

2.0 1.5

4.4 3.7

4.9

3.4

-8

-6

-4

-2

0

2

4

6

8

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

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%


（ratio）Feb, 20161.28times

Feb, 20163.3％

Aug, 20090.42times

Jul, 20095.5％

Job opening-to-application ratio(right scale)

Unemployment rate(left scale)

500

600

700

800

900

1,000

1,100

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)

-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

(Diffusion index)

Large enterprises/Manufacturing

Large enterprises/Non-Manufacturing

Small enterprises/Manufacturing

Small enterprises/Non-Manufacturing

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-

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

(2010 average=100・Seasonally Adjusted Index)

Production Shipments

Inventory Inventory Ratio

－14－

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"

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)

0.8%

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: [email protected]

－15－

http://www.mof.go.jp/english/jgbs/debt_management/message.htm

http://www.mof.go.jp/english/jgbs/debt_management/guide.htm

http://www.mof.go.jp/english/jgbs/debt_management/about.htm

http://www.mof.go.jp/english/jgbs/debt_management/plan/index.htm

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

http://www.mof.go.jp/english/jgbs/auction/past_auction_results/index.html

http://www.mof.go.jp/english/jgbs/topics/bond/index.html

http://www.mof.go.jp/english/jgbs/topics/t_bill/index.htm

http://www.mof.go.jp/english/jgbs/topics/gov_guaranteed_bonds/index.htm

http://www.mof.go.jp/english/jgbs/topics/swap/index.htm

http://www.mof.go.jp/english/jgbs/topics/taxation/index.htm

http://www.mof.go.jp/english/jgbs/topics/individual/index.htm

http://www.mof.go.jp/english/jgbs/reference/gbb/index.htm

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

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

http://www.mof.go.jp/english/about_mof/councils/gov_debt_management/index.html

http://www.mof.go.jp/english/about_mof/councils/jgbsp/index.html

http://www.mof.go.jp/english/about_mof/councils/jgb_investor/index.html

http://www.mof.go.jp/english/jgbs/publication/debt_management_report/index.htm

http://www.mof.go.jp/english/jgbs/publication/newsletter/index.htm

japanese government bonds€¦ · the next jgbi issuance auction in august 2016 is to be reopened...

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