our fundamental goal of debt management policy is …...contract day. for example, when you purchase...
TRANSCRIPT
What’s New: Advisory Council on Government Debt Management P2-5 MOF explained the basic concept on “JGB issuance based on medium- to long-term
market demands,” followed by an analysis of the JGB supply and demand trend basedon the concept. Efforts for “increasing the liquidity of the JGB market” were alsopresented.
Most members agreed on the concept. Various perspectives on JGB investment trendswere discussed.
MOF starts discussions for the FY2018 JGB annual issuance plan, taking theseopinions mentioned in the meeting into account.
Q&A: T+1 JGB settlement in details P6-7 We receive various kinds of questions from JGB investors. We start a Q&A section from
this newsletter and are happy to answer your questions here. This time, Kokusai Senseiwould like to explain the T+1 JGB settlement cycle.
Monthly Topic: BOJ Tankan, September 2017 survey P8 The Business Condition Index of Large Manufacturers sentiment hits the highest level
in a decade since Lehman shock.
IR Office: To the East Asia and US P9 Our IR activities in October: East Asia and US overseas IR tour
(Statistics)JGB Primary Market … P10 The Auction for Enhanced Liquidity and JGB Buy-Back … P11
JGB Secondary Market … P12 Investor Trends and JGB Outstanding … P14
Economic and Financial Trend … P18 Information … P19
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.
November 2017
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New look for JGB Monthly Newsletter The MOF JGB IR team in November starts to publish the JGB Monthly Newsletter in a renewed format. Since the launch of the new IR team in July after reshuffling, we have considered the update of the format to make it easier to navigate and more interactive. The changes include: Summary by which readers can grasp the contents in a minute Q&A which answers frequently asked questions in our IR activitiesWe hope this new look helps you. Any question, feel free to ask us at: [email protected]
The 45th meeting of the Advisory Council on Government Debt Management The 45th meeting of the Advisory Council on Government Debt Management was held on October 18, 2017. The agenda was as follows: (Agenda)
1. Current Debt Management Policy 2. Shortening JGB Settlement Cycles (report)
The MOF starts discussions for the FY2018 JGB annual issuance plan, considering the opinions mentioned in the meeting.
1. Current Debt Management Policy
[Summary of the MOF explanation on current debt management policy]
① JGB issuance based on medium- to long-term (mid-long) market demands
The basic objectives of the debt management policy have been: - “Implement secure and smooth issuance of JGBs” and - “Minimize medium to long term financing costs.”
In order to achieve them, the MOF aims to promote dialogue with the market and issues JGBs based on market demand. Although market demand-based issuance is intended, excessive response to temporary demands may raise funding costs by harming predictability for market participants or causing distortions of the market. Therefore, it is important to aim at “more stable and predictable issuance of JGBs” considering mid-long-term market demand. In this regard, the MOF analyzed expected supply and demand trends of JGBs in the mid-long term as follows.
Supply side Under the low interest rate environment, to reduce the future interest rate risks, the annual issuance amount of super-long-term bonds has increased in recent years, while that of short- and medium-term bonds has decreased. As a result, the outstanding amount of super-long-term bonds has increased significantly and that of medium- and long-term bonds has increased slightly.
Demand side The MOF analyzed investment trends in JGBs by banks, the main investors for short- and medium-term bonds, and life insurance companies, the main investors for super-long-term bonds. In recent years, life insurance companies increased their super-long-term bond holdings, while banks decreased JGB holdings. As a result, the demand for super-long-term bonds has been on the same trend as the supply side, which has significantly increased in the outstanding amount. However, this structure may change hereafter.
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What’s new
If the current JGB maturity composition was kept unchanged, a considerable amount of super-long-term issuance would be supplied to the market over time, despite netting out of the redemption. On the other hand, the redemption amount of medium- and long-term bonds tends to exceed the issuance amount. To aim at “more stable and predictable issuance of JGBs,” it is important to determine the change in market demand in the mid-long term and set the JGB maturity composition consistent with the change.
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Historical Changes in Outstanding Amount of JGB by maturities
Changes in Outstanding Amount (Net issuance amount of each maturity)
Outstanding Amount of JGB
(FY end)
(trillion yen)
Note1. Up to FY2016: Actual figures, FY2017: Estimate based on initial budget (including 56 trillion yen of front-loading bond)Note2. Outstanding amount by maturities is that of 2-40 Year JGBs which have not matured, not categorized by remaining maturitiesNote3. Figures may not sum up to total because of rounding
(trillion yen)
(FY end)
② Increasing liquidity of JGB market
Liquidity of the JGB Market is another important issue. According to the BOJ’s “Bond Market Survey,” the JGB market function continues to be evaluated as low (or not very high). Also, the supply-demand balance of specific JGB issues may become tightened. One of the causes is that the BOJ purchases issues broadly including off-the-run issues by market operations, while the MOF mainly supplies on-the-run issues by auctions. The MOF focuses on conducting “Auctions for Enhanced-liquidity,” to supply off-the-run issues that are short of liquidity structurally or due to rising demand. The annual issuance amount of this auction has increased in recent years, and the scope of eligible issues has expanded. With regard to “Auctions for Enhanced-liquidity,” issuance amounts of each zone are determined in every quarter, in response to the market environment, based on discussions with market participants. It is considered that this flexible measure will become more important to enhance the market liquidity by the MOF.
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Auctions for Enhanced-liquidity〇Some of off-the-run issues are short of liquidity due to some reasons, such as that considerable amount is held by investors until their maturities.
〇Auctions for Enhanced-liquidity are conducted to enhance function of the JGB market by supplying issues short of market liquidity.
〇 In particular, off-the-run issues are classified by remaining maturity in 3 zones (in 1-5years, 5-15.5years, 15.5-39 years) and the auctions are held respectively. Participants of the auction are limited to JGB Market Special Participants (21 companies). In these auctions, the issuing authority starts selling first to the price which has a large difference from the market price in descending order until the cumulative total reaches the planned issuance amount.
(Note) Auctions for Enhanced-liquidity was first introduced in April 2006. From April 2016, a zone for issues maturing in 1-5years was introduced. Details of Auctions for Enhanced-liquidity, such as the allocation of issuance amount for each zone, are determined in every quarter, in response to the market environment and investor demands, based on discussions with market participants.
inve
stors
・・・・
Remaining maturity 10 years
Remaining maturity 9 years (10-year bonds issued a
year ago)
Remaining maturity 7 years (10-year bonds issued
three year ago)
Remaining maturity 8 years (10-year bonds issued two
year ago)
Regular Auctions
【FY2017: 2.3 trillion yen every month】
Issued in response to demand
【The difference between Regular auctions andAuctions for Enhanced-liquidity】
< The image of Auctions for Enhanced-liquidity >
Auctions for Enhanced-liquidity(remaining maturity 5-15.5 years)
【FY2017: 0.55 trillion yen every month】
Regular Auctions Auctions for Enhanced-liquidity
Auction Participants
244 companies(financial institutions, etc.)
21 companies(JGB Market Special Participants)
Issue single issue any eligible issues for each zone
Auction methods
selling first to the highest price
selling first to the price which has a large differencefrom the market price
[Opinions from the participants]
(Importance of JGB issuance based on mid-long-term market demand trend)
- Most members agreed on the importance of JGB issuance based on mid-long-term market demand trend, as well as the importance of the Auctions for Enhanced-liquidity.
- Some members mentioned that it is important to discuss the debt management policy from a mid-long-term perspective and at the same time, flexibility is also important to continuously ensure stable issuance. For the flexibility, it was mentioned that active use of Auctions for Enhanced-liquidity continues to be favorable.
(Various perspectives of investment trends of JGBs)
- One of the members mentioned that banks have purchased JGBs and life insurance companies and pension funds have demanded long-term JGBs. If the monetary policy shifts toward tapering, deposit increase in the private sector would slow down. If the population is aging, payments of life insurance companies and pension funds would exceed their revenues. It could decrease demand for JGBs.
- Another member agreed to the MOF’s explanation that banks started to retain their holding amount of JGBs for collateral use. The member added that it should be notified that most JGBs which banks pledge for collateral are JGBs whose durations are less than 2 years.
- With regard to the MOF’s explanation that the liability side of life insurance companies may change hereafter, both in qualitative and quantitative ways, under the aging society with declining population, one of the members mentioned that the liability side may not change just as the MOF explained, because the decline in mortality rate may lead to investment demand in different ways.
- Another member mentioned that until recently, there had been some merits to maturity extension of government debt, to control refunding risks for government, and also to fulfill demands of investors seeking higher return. However, the presence of foreign investors and HFT (High Frequency Trading) has increased in recent years, as opposed to domestic demand which is expected to decline hereafter under the declining population. The time to change the debt management policy towards well-balanced issuance will come.
2. Shortening JGB Settlement Cycles (report)
The details are explained in the Q&A.
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Q1. What is the T+1 JGB settlement cycle and when will it start? A1. The purpose of the introduction of the T+1 settlement cycle is to mitigate settlement risk. In
the T+1 JGB settlement cycle, you will have the settlement on the next business day of the contract day. For example, when you purchase JGBs on Wednesday, May 1, 2018, you will receive the JGBs and pay cash on Thursday, May 2, 2018. The T+1 JGB settlement cycle will start on May 1, 2018, instead of T+2 both in primary and secondary markets. Overview of shortening of settlement cycle of JGB
Settlement date
Present After May 2018 (planned)
Secondary Market T+2
(2 business days after contract) T+1
(1 business day after contract)
Primary Market
General rule T+2
(2 business days after auction) T+1
(1 business day after auction)
Interest-bearing bonds (5-30 Years) issued in March, June, September or December
20th day of auction month (following day if 20th day is holiday)
T+1 (1 business day after auction)
*Maturity will become 3 months shorter
2 Year bonds 15th day of next month of auction
(following day if 15th day is holiday) 1st day of next month of auction (following day if 1st day is holiday)
Q2. Why will the maturity become 3 months shorter only for interest-bearing bonds (5-
30 Years) issued in March, June, September or December in the Primary market (blue cell)? A2. Maturities of 5-30 Year JGBs which are issued in March, June, September or December
will be 3 months shorter than now. The rule to fix the maturity date will be changed as below: Change of the rule to fix the maturity date of 5-30 Year JGBs
Issue Month Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.
Now (PRESENT) 20 December 20 March 20 June 20 September 20 Dec.
From May 2018 (NEW) 20 December 20 March 20 June 20 September
To explain the background of the change, let’s see a hypothetical example comparing with the
PRESENT rule. [Hypothetical example 1: September 2018 auction of 20 Year JGB under PRESENT rule] - Auction Date: 18 September 2018 - Issue Date: 19 September 2018 - 1st coupon payment: 20 September 2018 (under NEW rule, it will be 20 December 2019) - Maturity Date: 20 September 2038 (under NEW rule, it will be 20 June 2038) In this example, there is only a 1-day gap between the issue date and the 1st coupon payment date. Because some investors said that a short gap between the issue date and the 1st coupon payment date demanded large-scale system improvement, etc., we decided to introduce the NEW rule to avoid such a short gap.
Q&A: T+1 JGB settlement cycle We receive various kinds of questions from JGB investors. We start Q&A section from this newsletter and are happy to answer your questions here. This time, I would like to explain T+1 JGB settlement cycle.
Kokusai Sensei
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Q3. Why will the settlement date be the 1st day of the next month of auction only for 2-
Year bonds in the Primary market (red cell)? A3. The issuance date of 2-Year bonds will be exclusively the 1st day of the next month of the
auction date. It WILL NOT be mechanically T+1. Again, to explain the background of this exceptional treatment, let’s see two hypothetical examples. Please note that auctions of 2-Year JGBs are held once a month, usually on Tuesday or Thursday at/around the end of each month. [Hypothetical example 2: February 2019 auction of 2 Year JGB] - Auction Date: 28 February 2019 - T+1: 1 March 2019 [Hypothetical example 3: March 2019 auction of 2 Year JGB] - Auction Date: 28 March 2019 - T+1: 29 March 2019 These examples show us that with mechanical application of the T+1 rule, 2-Year JGBs could not be issued in a month and could be issued once or twice in another month. To ensure ONE issue in a month and settle as early as possible, we will have this exception.
If you have any questions regarding the contents of this newsletter, please do not hesitate to contact us at: [email protected]
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The Bank of Japan’s TANKAN (Sept. 2017 Survey) On October 2, the Bank of Japan (BOJ) released the TANKAN, a quarterly survey of more than
10,000 companies. The points are as follows:
MONTHLY TOPIC
-8-
The Business Condition Index for Large Manufacturing Enterprises came in at 22, showing its highest level in a decade which is equal to before Lehman shock.
The Index shows four consecutive quarters of improving in Business Conditions.
(Diffusion index of "Favorable" minus "Unfavorable", % points)
(Source) Bank of Japan “Tankan” For more information, see http://www.boj.or.jp/en/statistics/tk/index.htm/
(Source) Bank of Japan “Tankan”
22 (Sep 2017)
[Large Enterprises]
Manufacturing 17 22 +5
June. 2017 Sept. 2017
ChangebetweenJune and
Sept.
Dec. 2017(Forecast)
ChangebetweenSept. and
Dec.
Nonmanufacturing
0 19 -4
[Medium-sized Enterprises]
Manufacturing
19 -3
Nonmanufacturing 23 23
18 19 +1 14 -5
12 17 +5 13 -4
8 -2
Nonmanufacturing 7 8
[Small Enterprises]
Manufacturing 7 10 +3
+1 4 +4
[All Enterprises]
All industries 12 15 +3 11 -4
During the second week of October, Mr. Furuya, deputy director-general of the Financial Bureau, and Mr. Nakatsui, deputy-director for debt management, made a trip to East Asia, Hong Kong, Beijing and Seoul to update the Japanese economy and debt management policy and have discussions with JGB investors. In the discussions, the main topics were the outlook of the general election in Japan, the consumption tax hike, inflation and JGB issuance plans. Supported by the investors’ good knowledge of JGBs, the discussions were much more fruitful than expected. In addition, because it was perfect weather and the IR-team walked a lot on the trip, it was much healthier than expected.
During the first week of October, Ms. Kimata, director for debt
management and JGB investor relations, and Mr. Oshima, researcher, visited Boston and NY to have meetings with various JGB investors including asset management companies and banks. The first city was Boston where the first open-ended investment fund was born. We could see different types of asset managers (passive, active, etc.) but our discussions were always active. After 5 meetings in Boston, we flew to NY, a financial center of the world. In NY, we had 8 meetings with various investors. The topics of the discussions spanned a wide range, including the Japanese economy, politics and the JGB market. Supported by a warm welcome and great weather on the trip, we fortunately completed our schedule perfectly. We appreciate everyone and look forward to seeing them again.
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IR OFFICE
If you have any questions regarding the contents of this newsletter, please do not hesitate to contact us at: [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)
Amounts of Bids Accepted at the
Non-price- competitive Auction Ⅱ (billion yen)
8/1/2017 10-year 347 6/20/2027 0.1% 7,826.3 1,858.1 0.074% 0.073% 0.386 440.4 - 8/3/2017 10-year Inflation-Indexed Bonds 22 3/10/2027 0.1% 1,274.8 399.4 ▲0.358% - - - 19.9 8/8/2017 30-year 55 6/20/2047 0.8% 2,524.5 647.2 0.880% 0.876% - 151.9 30.7 8/17/2017 5-year 132 6/20/2022 0.1% 8,056.3 1,807.4 ▲0.081% ▲0.083% - 391.8 91.2 8/22/2017 20-year 161 6/20/2037 0.6% 3,665.2 813.3 0.552% 0.550% - 186.5 64.3 8/31/2017 2-year 380 9/15/2019 0.1% 8,843.0 1,781.0 ▲0.146% ▲0.149% 0.004 418.1 254.1 9/5/2017 10-year 348 9/20/2027 0.1% 7,369.5 1,865.1 0.016% 0.011% 0.306 434.3 11.1 9/7/2017 30-year 56 9/20/2047 0.8% 2,416.5 658.3 0.841% 0.832% - 141.2 3.6 9/12/2017 5-year 133 9/20/2022 0.1% 7,234.2 1,777.7 ▲0.104% ▲0.110% - 421.6 - 9/14/2017 20-year 162 9/20/2037 0.6% 3,337.7 803.9 0.563% 0.560% - 195.0 77.0 9/26/2017 40-year 10 3/20/2057 0.9% 1,618.0 499.4 1.015% - - - 56.8 9/28/2017 2-year 381 10/15/2019 0.1% 7,416.1 1,804.9 ▲0.114% ▲0.119% - 394.6 - 10/3/2017 10-year 348 9/20/2027 0.1% 7,842.2 1,920.0 0.082% 0.077% 0.496 379.0 - 10/5/2017 10-year Inflation-Indexed Bonds 22 3/10/2027 0.1% 1,237.8 399.4 ▲0.361% - - - 47.0 10/11/2017 30-year 56 9/20/2047 0.8% 2,559.9 643.3 0.884% 0.881% - 155.9 68.8 10/17/2017 20-year 162 9/20/2037 0.6% 3,243.7 800.1 0.591% 0.590% - 198.9 85.2 10/19/2017 5-year 133 9/20/2022 0.1% 7,559.9 1,782.9 ▲0.082% ▲0.082% - 416.1 328.1 10/26/2017 2-year 382 11/15/2019 0.1% 10,599.0 1,786.6 ▲0.141% ▲0.143% 0.500 412.3 163.9
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)
8/3/2017 3-month 699 11/6/2017 14,635.50 3,638.63 ▲0.1142% ▲0.1178% 801.30 8/8/2017 6-month 700 2/13/2018 9,936.20 2,133.95 ▲0.1131% ▲0.1150% 466.00 8/9/2017 3-month 701 11/13/2017 17,864.70 3,525.17 ▲0.1082% ▲0.1110% 824.80 8/16/2017 1-year 702 8/20/2018 9,223.60 1,861.09 ▲0.1251% ▲0.1281% 438.86 8/17/2017 3-month 703 11/20/2017 18,512.20 3,550.13 ▲0.1243% ▲0.1275% 829.80 8/24/2017 3-month 704 11/27/2017 18,348.70 3,588.05 ▲0.1423% ▲0.1463% 821.90 8/31/2017 3-month 705 12/4/2017 15,682.70 3,584.17 ▲0.1683% ▲0.1760% 805.80 9/6/2017 6-month 706 3/12/2018 7,189.60 2,116.16 ▲0.1823% ▲0.1983% 483.80 9/7/2017 3-month 707 12/11/2017 11,539.40 3,621.75 ▲0.1864% ▲0.2040% 798.20 9/14/2017 3-month 708 12/18/2017 14,652.70 3,654.48 ▲0.1175% ▲0.1394% 745.50 9/15/2017 1-year 709 9/20/2018 9,178.60 1,876.68 ▲0.1278% ▲0.1308% 423.30 9/20/2017 3-month 710 12/25/2017 16,561.00 3,702.04 ▲0.1002% ▲0.1074% 727.90 9/28/2017 3-month 711 1/10/2018 15,884.90 3,563.08 ▲0.1550% ▲0.1652% 816.90 10/4/2017 6-month 712 4/10/2018 9,147.40 1,866.85 ▲0.1603% ▲0.1643% 433.10 10/5/2017 3-month 713 1/15/2018 14,000.50 3,569.58 ▲0.1617% ▲0.1685% 830.40 10/12/2017 3-month 714 1/22/2018 12,893.70 3,590.07 ▲0.1768% ▲0.1865% 849.90 10/18/2017 1-year 715 10/22/2018 9,965.40 1,896.79 ▲0.1618% ▲0.1687% 403.20 10/19/2017 3-month 716 1/29/2018 14,963.80 3,542.77 ▲0.1861% ▲0.1924% 827.20 10/26/2017 3-month 717 2/5/2018 14,573.50 3,600.63 ▲0.1898% ▲0.1961% 839.30
Auction Calendar for Nov. 2017 – Jan. 2018 Auction Date Issue Auction Date Issue Auction Date Issue Auction Date Issue 11/1(Wed) T-Bills (3-month) 11/28(Tue) 40-year 12/20(Wed) T-Bills (3-month) 1/18(Thu) 30-year
11/1(Wed) 10-year 11/30(Thu) T-Bills (3-month) 12/22(Fri) Auctions for Enhanced-liquidity (remaining maturities of 5-15.5 years) 1/22(Mon) Auctions for Enhanced-liquidity
(remaining maturities of 5-15.5 years)
11/7(Tue) Auctions for Enhanced-liquidity (remaining maturities of 1-5 years) 11/30(Thu) 2-year 12/26(Tue) 2-year 1/25(Thu) T-Bills (3-month)
11/8(Wed) T-Bills (6-month) 12/5(Tue) 10-year 1/5(Fri) T-Bills (3-month) 1/25(Thu) 20-year
11/9(Thu) T-Bills (3-month) 12/6(Wed) T-Bills (6-month) 1/5(Fri) Auctions for Enhanced-liquidity (remaining maturities of 1-5 years) 1/30(Tue) 2-year
11/9(Thu) 30-year 12/7(Thu) T-Bills (3-month) 1/10(Wed) T-Bills (6-month) 11/14(Tue) 5-year 12/7(Thu) 30-year 1/10(Wed) 10-year 11/15(Wed) T-Bills (1-year) 12/12(Tue) 5-year 1/11(Thu) T-Bills (3-month) 11/16(Thu) T-Bills (3-month) 12/14(Thu) T-Bills (3-month) 1/12(Fri) 40-year 11/16(Thu) 20-year 12/14(Thu) 20-year 1/16(Tue) 5-year 11/21(Tue) Auctions for Enhanced-liquidity
(remaining maturities of 5-15.5 years) 12/18(Mon) T-Bills (1-year) 1/17(Wed) T-Bills (1-year)
11/22(Wed) T-Bills (3-month) 12/19(Tue) Auctions for Enhanced-liquidity (remaining maturities of 15.5-39 years) 1/18(Thu) T-Bills (3-month)
Top 10 PDs by Total Purchase in Auctions (Calculated by Duration) (Apr. 2017 ~ Sep. 2017) 1 Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. 6 Deutsche Securities lnc. 2 Nomura Securities Co., Ltd. 7 SMBC Nikko Securities Inc. 3 Daiwa Securities Co. Ltd. 8 BNP Paribas Securities (Japan) Limited 4 Mizuho Securities Co., Ltd. 9 Goldman Sachs Japan Co., Ltd. 5 Merrill Lynch Japan Securities Co., Ltd. 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.
(Until 31 October 2017)
(Until 31 October 2017)
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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
8/24/2017 2,040.7 549.0 ▲0.012% ▲0.011% 10-year(329, 330, 332) 20-year(67, 142) 30-year(9)
8/29/2017 967.5 398.2 ▲0.007% ▲0.003% 20-year(143, 146) 30-year(13, 18, 22, 50, 51, 52) 40-year(5, 7, 8, 9)
9/20/2017 1,212.9 299.2 ▲0.007% ▲0.005%
2-year(370, 372, 373) 5-year(125, 131) 10-year(319, 320) 20-year(41, 47, 48, 53, 56, 57)
9/22/2017 1,544.7 547.6 ▲0.014% ▲0.013% 10-year(325, 327, 328, 329, 330, 333, 334, 335) 20-year(58, 61, 64, 65, 83, 84, 126, 127, 130, 131, 133, 134, 135, 138, 139, 140) 30-year(2, 7, 8, 9)
10/13/2017 1,990.9 546.6 +0.001% +0.002%
10-year(327, 328, 329, 330, 331, 332, 333, 334) 20-year(61, 64, 70, 71, 72, 76, 77, 94, 97, 99, 100, 101, 107, 109, 111, 114, 115, 127, 128, 130, 131, 137, 142) 30-year(2, 3)
10/24/2017 1,252.7 397.4 ▲0.007% ▲0.006% 20-year(145) 30-year(13, 15, 17, 25, 29, 33, 34, 38, 39, 41, 45, 46, 47, 49, 50, 51) 40-year(1, 3, 5, 6, 9)
Target Zones of the Auction for Enhanced-Liquidity for the Third Quarter of FY 2017
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
4/17/2017 132.1 20.3 ▲0.149 ▲0.11 19, 20, 21, 22 6/15/2017 121.0 20.1 ▲0.284 ▲0.27 20, 22 8/18/2017 126.7 20.0 ▲0.111 ▲0.08 22
10/20/2017 90.2 20.0 ▲0.182 ▲0.09 18, 19, 20, 22
THE AUCTIONS FOR ENHANCED-LIQUIDITY 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 September 2017. Note2: All issues in the graph above will be eligible afterward.
Buy-back Results
(Until 31 October 2017)
(Until 2 November 2017)
②Remaining maturity : approx.5‐~15.5‐year
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0500
1,0001,5002,0002,5003,0003,5004,0004,5005,0005,5006,0006,5007,000
JN37
0
JN37
1
JS11
6
297
298
JN37
2
JN37
3
JN37
4
JS11
7
299
300
JL41
JL42
JN37
5
JN37
6
JN37
7
JS11
8
JS11
9
301
302
JN37
8
JN37
9
JN38
0
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
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 325
JL58
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
(Remaining maturities)
(billion yen)
0500
1,0001,5002,0002,5003,0003,5004,0004,5005,000
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 34
2JL
85JL
86JL
87 343
JL88
JL89 34
4JL
90JL
91 345
JL92 34
6JL
93JL
94 347
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
JX6
JL13
2JL
133
JL13
4JL
135
JL13
6JX
7JL
137
JL13
8JL
139
JL14
0JX
8JL
141
JL14
2JX
9JL
143
JL14
4JX
10
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
JL14
5
JX11
JL14
6
JX12
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
JX27
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 JU1
JU2
JU3
JU4
JU5
JU6
JU7
JU8
JU9
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
-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 Jan-17
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-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17
Japan United States
United Kingdom Germany
-0.4%
-0.2%
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
0%
1%
2%
3%
4%
5%
6%
7%
8%
Jan-13May-13Sep-13 Jan-14May-14Sep-14 Jan-15May-15Sep-15 Jan-16May-16Sep-16 Jan-17May-17Sep-17
Volatility Yield (right scale)
-0.4%
-0.2%
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
2016/12/302017/3/312017/6/302017/7/312017/8/312017/9/29
40353020 25151050
-1%
0%
1%
2%
3%
4%
5%
Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17
BEI (Japan : 10 year)
BEI (U.S.A. : 10 year)
BEI (U.K. : 10 year)
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
-12-
Yield and Volatility (10Yr)
Break-Even Inflation Rates
Source: Bloomberg, Calculation by the Ministry of Finance
(Until 29 September 2017)
(Until 29 September 2017)
(Until 29 September 2017)
(Until 29 September 2017)
0
500
1,000
1,500
2,000
2,500
Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17
Bond-Lending
Bond-Gensaki
0
20
40
60
80
100
120
140
160
180
200
Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17
0
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17
Treasury Discount BillsMedium Term BondsLong Term Bonds
-0.1%
0.0%
0.1%
0.2%
0.3%
0.4%
0.5%
Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17
Call Rate (Uncollateralized Overnight)
TIBOR 3-months (Euro-Yen)
Basic Loan Rate
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
-13-
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 September 2017)
0
50
100
150
200
250
300
350
400
450
500
550
Apr-12 Oct-12 Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17
Total AssetsMonetary BaseJGBs
QQE2QQE(trillion yen)Apr 2013(Actual)
Sep 2017(Actual)
Monetary Base 155 475
JGBs 98 404
CP 1.4 1.9
Corporate Bonds 2.9 3.2
ETFs 1.7 15.8
J-REITs 0.13 0.43
Total Assets 175 513
0
10
20
30
40
50
Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17
190200210220230240250
0
20
40
60
80
100
120
140
Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17
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
7.0
Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul
City Banks
Net Purchase
Net Sale
2013 2014 2015 2016 2017
-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 Apr Jul Oct Jan Apr Jul
Regional banks
Net Purchase
Net Sale
2013 2014 2015 2016 2017
-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 Apr Jul Oct Jan Apr Jul
Life and non-life insurance companies
Net Purchase
Net Sale
2013 2014 2015 2016 2017
-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 Apr Jul Oct Jan Apr Jul
Foreigners
Net Purchase
Net Sale
2013 2014 2015 2016 2017
(unit: trillion yen)(unit: trillion yen)
(unit: trillion yen) (unit: trillion yen)
-14-
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
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17
City Banks Trust Banks Insurance Companies Foreigners
-6
-5
-4
-3
-2
-1
0
1
2
3
4
Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17
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
2.5
3
Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17
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-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17
Short-term debt securities Long-term debt securities Equity and investment fund shares
Net
Purchase
Net
Sales
59.1 63.3
67.9
55.2 55.6
55.0 52.2 49.3
46.4
52.1
58.1 56.6
61.8 67.8
77.0 78.3
76.7 81.8
86.1
82.6 81.9
81.7 79.0
83.8 81.5
83.9 87.2
93.0
97.7
94.9 100.5
108.5 110.3
111.6 113.6
114.9
116.6 117.0
7.3
7.9
8.5
6.8
6.9 6.7 6.3
5.9 5.5
6.0
6.6 6.4
7.0 7.5
8.3 8.5 8.3 8.6
9.0 8.5 8.4 8.4
8.0 8.4
8.1 8.2 8.6
9.1 9.4
9.1 9.6
10.4 10.2 10.1 10.4
10.6 10.8 10.8
20
40
60
80
100
120
1
2
3
4
5
6
7
8
9
10
11
Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17
Amount of JGB Holdings (right)
Proportion of JGB Holdings (left)
(trillion yen)
%
%
%
%
%
%
%
%
%
%
%
10.8%
32.2%
52.1%
0%
10%
20%
30%
40%
50%
60%
Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17
①Market Share of Foreign Investors (JGB Futures Market)
②Market Share of Foreign Investors (JGB Market)
③JGB Holdings by Foreign Investors
-15-
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
50
100
150
200
250
300
350
400
450
500
550
600
650
700
750
800
850
FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
18.6% 17.0% 17.8% 18.3% 18.2% 17.9% 17.3% 16.4% 15.1% 14.3%
11.5% 11.4%13.0% 12.5% 11.9% 12.4% 12.0% 11.1% 10.6% 10.5%
8.2% 8.9%8.5%
7.9% 8.6% 8.1% 7.8% 7.8% 7.9% 7.7%9.0% 9.2%
8.4%9.0% 8.6% 8.1% 8.1% 8.2% 7.8% 8.2%
8.6% 8.4%
8.8%8.4% 7.8%
7.8% 7.8% 7.4% 7.8% 6.8%
4.6% 5.3%
5.2%4.7%
4.9%4.4% 4.2% 5.0% 4.2% 4.4%
5.6% 5.6%
4.9%5.2% 4.6%
4.5%5.0% 4.3% 4.4% 4.8%
6.0% 5.5%
5.5%4.8%
4.8%5.3%
4.5% 4.5% 5.0% 4.8%
5.9% 6.2%
5.2%5.1%
5.6%4.7%
4.8% 5.2% 4.9% 5.1%
5.5% 5.0%
4.7%5.2%
4.4%4.3%
4.6% 4.2% 4.5% 4.1%
14.5% 14.8%
14.4%
14.4%14.9%
15.6%16.5%
17.7%18.4% 19.2%
2.0% 2.7%
3.6%
4.6%
5.8%
6.7%
7.5%8.3%
9.4%10.1% 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)
541.5 545.9
594.0
636.3669.9
705.0
743.9
774.1805.4
*years to maturity
Average
YTM* 6Y1M 6Y3M 6Y5M 6Y8M 7Y0M 7Y3M 7Y7M 8Y0M 8Y5M 8Y7M
Average YTM*
(excluding saving
bonds)6Y1M 6Y4M 6Y6M 6Y10M 7Y1M 7Y5M 7Y8M 8Y0M 8Y5M 8Y8M
830.6
General Government
(ex Public Pensions)
3.6 0.4% Fiscal
Loan Fund0.0
0.0%
BOJ401.9 41.3%
Banks,etc.205.7 21.1%
Life and Non-life Insurance,etc.
202.5 20.8%
Public Pensions
46.9 4.8%
Pension Funds30.8 3.2%
Foreigners57.4 5.9%
Households12.3 1.3%
Others12.0 1.2%
General Government(ex Public Pensions)
3.6 0.3% Fiscal
Loan Fund0.0
0.0%
BOJ436.9 40.3%
Banks,etc.220.8 20.4%
Life and Non-life Insurance,etc.
204.7 18.9%
Public Pensions
46.9 4.3%
Pension Funds30.8 2.8%
Foreigners117.0 10.8%
Households12.3 1.1%
Others12.0 1.1%
JGB and T-Bill Holders
Breakdown by JGB and T-Bill Holders (The end of Jun. 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 Nonlife insurance” includes Japan Post Insurance.
(trillion yen)
Breakdown of Outstanding Amount of General Bonds by Remaining Years to Maturity
T-Bill Holders
Total 112.0 trillion yen
JGB Holders
Total 972.9 trillion yen
Total 1,084.9 trillion yen
-16-
General Government(ex Public Pensions)
0.0 0.0%
Fiscal Loan Fund
0.0 0.0%
BOJ35.0
31.2%
Banks,etc.15.2
13.5%
Life and Non-life Insurance,etc.
2.2 2.0%
Public Pensions
0.0 0.0%
Pension Funds
0.0 0.0%
Foreigners59.7
53.3%
Households0.0
0.0%
Others0.0
0.0%
Types The amount of redemption at maturity Scheduled redemption date
15-Year Floating-Rate Bonds 625.7 November 20
2-Year Bonds 2,583.4 November 15
Treasury Bill 2,100.0 November 20
Total 5,309.1
0100200300400500600700800900
1,0001,1001,2001,3001,4001,5001,6001,7001,8001,9002,0002,1002,200
14 15 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 476 470 946New 6,074 1,045 7,119
Source: Ministry of Finance
Time-to-Maturity Structure of Outstanding JGB(Jun. 2017)
General Bonds Issuance Amount and Outstanding
Note 1: Issuance Amount: revenue basis, FY2005-2015: actual, FY2016: estimates, FY2017: initial budget Note 2: Outstanding: nominal basis, FY2005-2015: actual, FY2016: estimates, FY2017: initial budget Source: Ministry of Finance
Market-held Balance of the Inflation-Indexed Bonds (as of September 30, 2017)
(trillion yen)
Scheduled redemption of JGB at maturity in November, 2017
Note.1: The figures are based on the outstanding JGBs at the end of September, 2017. 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)
-17-
Source: Ministry of Finance, Bank of Japan
526.9 531.7 541.5 545.9 594.0 636.3 669.9 705.0 743.9 774.1 805.4 845.3 865.2
136.8 135.6 124.6 127.1
142.4 143.1 163.1 163.3
153.6 158.0 150.5 150.2 142.0
100
200
300
400
500
600
700
800
900
0
30
60
90
120
150
180
05 06 07 08 09 10 11 12 13 14 15 16 17
Outstanding (right-hand scale) Issuance Amount (left-hand scale)
88.58
94.28
70.4368.67
60.59
39.68 40.3039.44
42.4539.63
13.51 12.1714.31 16.01
15.67
18.20 18.0419.85
19.15 17.94
4.91 4.73 5.32 6.39 6.91 6.19 8.16 9.44 10.74 8.83
1.64 1.30 1.31 1.93 1.87 1.96 2.06 2.22 2.21 0.220
102030405060708090
100110120130
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 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 8 months
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
Apr-
16
Jul-1
6
Oct
-16
Jan-
17
Apr-
17
Jul-1
7
(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
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
70
80
90
100
110
120
130
140
150
160
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
(2010 average=100・Seasonally Adjusted Index)
Production Shipments
Inventory Inventory Ratio
0
50
100
150
200
250
300
350
400
450
500(trillion yen)
Banknotes in Circulation
Coins in Circulation
Current Account Balances
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
(ratio)Sep, 20171.52times
Sep, 20172.8%
Aug, 20090.42times
Jul, 20095.5%
Job opening-to-application ratio(right scale)
Unemployment rate(left scale)
0.7%
0.0%
-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
(%)
CPI
CPI excluding food (excludingalcohilic beverages) and energy
Change from the previous year
Apr.4, 2013BOJ released QQE
4.4
-1.8 -1.6
0.5
4.93.9 2.7
-0.4
4.4
-7.4
-0.5
3.0
4.6
-0.1
0.7
-0.9
2.1 2.0
0.91.6 1.2
2.5
-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 Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ
2012 2013 2014 2015 2016 2017
(%)
Private Demand Public Demand
Foreign Demand Real GDP
Annualized rate of Change from the previous quarter (Seasonally adjusted)
(CY)
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 1.6
4.3
3.9
4.9
3.1
5.9
4.6
5.8
4.1
6.0
4.5
-8
-6
-4
-2
0
2
4
6
8
2009
Q120
09Q2
2009
Q320
09Q4
2010
Q120
10Q2
2010
Q320
10Q4
2011
Q120
11Q2
2011
Q320
11Q4
2012
Q120
12Q2
2012
Q320
12Q4
2013
Q120
13Q2
2013
Q320
13Q4
2014
Q120
14Q2
2014
Q320
14Q4
2015
Q120
15Q2
2015
Q320
15Q4
2016
Q120
16Q2
2016
Q320
16Q4
2017
Q120
17Q2
Primary Income Trade BalanceServices Secondary IncomeCurrent Account
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"
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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/taxation2016/index.html
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
To subscribe to our Newsletter mailing list, please email: [email protected]
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INFORMATION