Japanese Finance Minister Katsunobu Kato said Tuesday that the government will pursue sound debt management strategies while maintaining close communication with market participants.
Speaking at a regular press briefing, Kato emphasized the importance of encouraging a broad base of investors to purchase government bonds, especially as the Bank of Japan scales back its bond-buying program.
To boost domestic ownership of Japanese government bonds (JGBs), Kato mentioned plans such as introducing a new floating-rate bond tied to short-term interest rates and allowing unlisted companies to invest in JGBs tailored for individual investors.
He stressed that the government would continue implementing policies to preserve market trust in Japan’s public debt.
This comes as Reuters reported Monday that the government is considering repurchasing some super-long-term bonds issued at lower interest rates, in addition to a likely move to reduce the issuance of such bonds amid surging yields.
Click here for more on Finance and Investing