Pressure Mounts for Japan to Adjust Bond Sales as Soon as July

Expectations in the market are intensifying that the Japanese government may adjust debt issuance as soon as next month by increasing sales of shorter maturity securities and trimming offerings of longer-dated ones.

Japan’s yields are hovering at historical highs after a series of auctions in recent weeks that saw poor demand. Thursday’s 30-year bond sale saw its weakest demand ratio since 2023 but yields fell as markets began pricing in expectations the Ministry of Finance may cut issuance to cap the recent surge in longer-term debt yields.