Raising Interest Rates Overlapping Fiscal Expansion, Japan Reduces Bond Issuance in 2026, Focusing on "Reducing Long-term Debt and Increasing Short-term Debt"

According to the Zhtng financial APP, the Japanese government plans to reduce the sale of government bonds in the 2026 fiscal year starting in April next year, with a focus on cutting super-long-term debt. The Japanese Ministry of Finance said on Friday that the total amount of government bonds issued to institutional investors through auctions in the 2026 fiscal year will be 168.5 trillion yen (approximately 1.1 trillion US dollars), which is a decrease of 3.8 trillion yen from the initial plan of the previous fiscal year. The total sales of 20-year, 30-year, and 40-year government bonds will decrease by 7.2 trillion yen to 17.4 trillion yen, and according to the initial budget, the issuance of super-long-term government bonds will be reduced to the lowest level since 2009. At the same time, the issuance of 10-year government bonds will remain unchanged, while the sales of 2-year and 5-year government bonds will increase.