JAPANESE GOVERNMENT BONDS

Monthly Newsletter of the Ministry of Finance, Japan

January 2020

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.

SUMMARY

What's New: JGB Issuance Plan for FY2020

p. 2-3

  • Newly-issuedbonds will decline by 0.1 trillion yen from the figure for FY2019(initial). FILP bonds will remain at the same amount and Refunding bonds will increase by 4.8 trillion yen. The total JGB issuance amount for FY2020 will be 153.5 trillion yen, with a rise of 4.7 trillion yen compared with FY2019(initial).
  • Market issuance by normal auctions will decrease by 0.6 trillion yen from that of FY2019(initial) to 128.8 trillion yen. Issuance amounts by maturity type will increase in the 40-year zone, based on the current low interest rate and the market needs. On the other hand, the amount of Liquidity enhancement auctions will decline in the 5-15.5 year zone, considering the weakened demand.

What's New: Issuance Amount of the Inflation-Indexed Bond, etc.

p.4

  • The MOF decided on the "Issuance Amount of the Inflation-Indexed Bond in the January-March quarter 2020" and "Issuance Amount for Liquidity Enhancement Auctions in the January-March quarter 2020", following the discussions at the 84th Meeting of JGB Market Special Participants, which was held on December 12, 2019.
  • The MOF updated the league table of the top 10 PDs for successful bids in the JGB auctions which is updated quarterly.

Monthly Topic: JGB Holdings as of September 2019

p.5

  • On December 20, the Bank of Japan (BOJ) released the Flow of Funds Accounts of the 3rd Quarter 2019. The shares of JGBs (including T-Bills) holders were updated.

IR Office: IR activities in November

p.6

  • IR tour to Europe

Statistics

JGB Primary Market

…

p. 7

Liquidity Enhancement Auctions and JGB Buy-Back

… p.8

JGB Secondary Market

…

p. 9

Investor Trends and JGB Outstanding

… p. 11

Economic and Financial Trends… p. 15

Information

… p. 16

The Ministry of Finance

www.mof.go.jp

-1-

What's New

-2-

-3-

-4-

Monthly Topic

Breakdown by JGBs (including T-Bills) Holders (end of Sep. 2019)

On December 20, the Bank of Japan (BOJ) released the Flow of Funds Accounts of the 3rd Quarter 2019. The shares of JGBs (including T-Bills, hereinafter referred to as "JGBs") holders were updated as follows:

  • The total amount of JGBs and T-Bills outstanding increased by 3.8 trillion yen to 1,140.7 trillion yen.
  • BOJ increased its holdings of JGBs by 6.1 trillion yen to 500.2 trillion yen.
  • The amount of JGBs held by domestic Banks in Q3 fell by 1.3 trillion yen to 171.8 trillion yen.
  • The amount of JGBs held by foreign investors in Q3 fell by 0.9 trillion yen to 144.4 trillion yen.

The end of Jun. 2019

The end of Sep. 2019

General Government

Households

Others

General Government

Households

13.4

(ex Public Pensions)

(ex Public Pensions)

9.4

13.3

Others

1.2%

2.9

3.2

0.8%

1.2%

10.1

0.3%

Pension Funds

Foreigners

0.9%

0.3%

Foreigners

Fiscal Loan Fund

Fiscal Loan Fund

Pension Funds

31.9

145.3

32.1

144.4

0.0

2.8%

12.8%

0.0

12.7%

0.0%

0.0%

2.8%

Public Pensions

Public Pensions

43.1

43.2

3.8%

BOJ

3.8%

BOJ

500.2

Life and Non-life

494.1

Life and Non-life

43.9%

43.5%

Insurance,etc.

Insurance,etc.

223.3

222.9

19.6%

19.6%

Banks,etc.

Banks,etc.

173.1

171.8

15.1%

15.2%

(trillion yen)

(trillion yen)

Total ¥1,136.9 trillion

Total ¥1,140.7 trillion

Source: Bank of Japan "Flow of Funds Account (Preliminary Figures)"

For more detailed data, please refer to the following:

BOJ Time Series Data Search:https://www.stat-search.boj.or.jp/index_en.html

-5-

IR Office

  • In the second week of November, Mr. Ohata, Director for Debt Management and JGB Investor Relations, and Mr. Murata, Researcher, visited Paris, and in the third week of November, Mr. Ohata and Mr. Araki, Researcher, visited Amsterdam, Frankfurt and London to have meetings with foreign investors. During the meetings, we described the recent developments in Japanese economy and our stance on the debt management policy. Then, we exchanged views on relevant Japanese policies and recent market conditions. In addition, we discussed the Japanese and European economic situations. The discussions were very fruitful and informative for
    us. We would like to express our appreciation for their heartwarming welcomes and we hope to meet again in the future.

If you have any questions regarding the contents of this newsletter, please do not hesitate to contact us at: JGB-IR@mof.go.jp

-6-

JGB Primary Market

Auction Results

（Bonds）

(Until 31 December 2019)

Yield at the

Amounts of

Amounts of Bids

Amounts of Bids

Amounts of

Amounts of

Accepted at the

Accepted at the

Yield at the

Non-Competitive

Auction Date

Type of Security

Issue

Maturity Date

Nominal

Competitive

Bids

Lowest

Average

Bids Tendered

Non-price-

Non-price-

Number

Coupon

Bids

Accepted

Accepted

competitive

competitive

Price

/Accepted

(billion yen)

(billion yen)

Price

Auction Ⅰ

Auction Ⅱ

(billion yen)

(billion yen)

(billion yen)

10/1/2019

10-year

356

9/20/2029

0.1%

5,980.8

1,746.7

▲0.130%

▲0.158%

0.265

353.0

0.0

10/10/2019

30-year

64

9/20/2049

0.4%

2,240.3

578.6

0.385%

0.382%

-

120.4

96.1

10/17/2019

5-year

141

9/20/2024

0.1%

5,836.3

1,579.6

▲0.274%

▲0.280%

-

319.6

0.0

10/24/2019

20-year

170

9/20/2039

0.3%

2,871.7

735.2

0.249%

0.245%

-

164.1

0.0

10/29/2019

2-year

406

11/1/2021

0.1%

7,881.4

1,638.2

▲0.208%

▲0.208%

-

361.2

299.0

11/6/2019

10-year

356

9/20/2029

0.1%

6,175.8

1,705.5

▲0.094%

▲0.099%

0.265

393.9

0.0

11/8/2019

10-yearInflation-Indexed Bonds

24

3/10/2029

0.1%

1,368.7

399.6

▲0.204%

-

-

-

10.7

11/12/2019

30-year

64

9/20/2049

0.4%

2,083.1

568.9

0.464%

0.458%

-

130.6

0.0

11/14/2019

5-year

141

9/20/2024

0.1%

6,273.3

1,556.5

▲0.188%

▲0.190%

-

343.0

283.9

11/20/2019

20-year

170

9/20/2039

0.3%

3,078.2

731.6

0.268%

0.266%

-

167.3

133.9

11/26/2019

40-year

12

3/20/2059

0.5%

1,399.4

399.6

0.460%

-

-

-

55.4

11/28/2019

2-year

407

12/1/2021

0.1%

6,875.9

1,664.9

▲0.183%

▲0.189%

-

334.6

0.0

12/3/2019

10-year

356

9/20/2029

0.1%

5,679.7

1,730.1

▲0.026%

▲0.042%

0.332

369.3

0.0

12/5/2019

30-year

64

9/20/2049

0.4%

2,108.7

571.6

0.432%

0.430%

-

128.0

102.9

12/10/2019

5-year

141

9/20/2024

0.1%

6,255.8

1,555.4

▲0.066%

▲0.083%

-

344.1

283.9

12/17/2019

20-year

170

9/20/2039

0.3%

3,026.9

737.4

0.289%

0.286%

-

162.0

128.1

12/24/2019

2-year

408

1/1/2022

0.1%

7,762.9

1,656.0

▲0.095%

▲0.098%

-

343.5

257.7

Auction Results

（Treasury Discount Bills）

(Until 31 December 2019)

Amounts of Bids

Amounts of

Amounts of

Yield at the

Yield at the

Accepted at the

Issue

Lowest

Non-price-

Auction Date

Type of Security

Maturity Date

Competitive Bids

Bids Accepted

Average

Number

Accepted

competitive

(billion yen)

(billion yen)

Price

Price

Auction Ⅰ

(billion yen)

10/4/2019

3-month

861

1/14/2020

13,024.40

3,498.18

▲0.3333%

▲0.3657%

771.80

10/9/2019

6-month

862

4/10/2020

8,617.70

1,895.75

▲0.2708%

▲0.2967%

404.20

10/11/2019

3-month

863

1/20/2020

11,894.30

3,563.57

▲0.2801%

▲0.3049%

766.40

10/17/2019

1-year

864

10/20/2020

6,687.60

1,561.37

▲0.1876%

▲0.1936%

338.60

10/18/2019

3-month

865

1/27/2020

10,176.60

3,495.88

▲0.1991%

▲0.2385%

774.10

10/25/2019

3-month

866

2/3/2020

10,180.90

3,485.48

▲0.1712%

▲0.1943%

784.50

11/1/2019

3-month

867

2/10/2020

12,980.10

3,510.37

▲0.1579%

▲0.1700%

789.60

11/7/2019

6-month

868

5/11/2020

9,617.00

1,877.57

▲0.1462%

▲0.1563%

422.40

11/8/2019

3-month

869

2/17/2020

16,544.92

3,485.58

▲0.1451%

▲0.1492%

784.40

11/15/2019

3-month

870

2/25/2020

13,077.71

3,526.08

▲0.1989%

▲0.2137%

793.90

11/19/2019

1-year

871

11/20/2020

5,797.20

1,551.67

▲0.1911%

▲0.2000%

348.30

11/22/2019

3-month

872

3/2/2020

9,510.11

3,517.17

▲0.2103%

▲0.2263%

792.80

11/29/2019

3-month

873

3/9/2020

11,653.91

3,493.26

▲0.1507%

▲0.1783%

786.70

12/6/2019

3-month

874

3/16/2020

10,043.10

3,527.09

▲0.0986%

▲0.1187%

792.90

12/9/2019

6-month

875

6/10/2020

8,749.80

1,983.45

▲0.0996%

▲0.1036%

316.50

12/13/2019

3-month

876

3/23/2020

14,670.50

3,527.54

▲0.1154%

▲0.1284%

792.40

12/18/2019

1-year

877

12/21/2020

6,578.30

1,617.88

▲0.1053%

▲0.1172%

282.10

12/20/2019

3-month

878

3/30/2020

12,929.20

3,557.38

▲0.0893%

▲0.1061%

782.60

Auction Calendar for Jan. 2020 - Mar. 2020

Auction Date

Issue

Auction Date

Issue

Auction Date

Issue

Auction Date

Issue

1/7(Tue)

T-Bills(3-month)

1/28(Tue)

40-year

2/20(Thu)

20-year

3/16(Mon)

Liquidity Enhancement Auction

(remaining maturities of 5-15.5 years)

1/7(Tue)

10-year

1/30(Thu)

2-year

2/21(Fri)

T-Bills(3-month)

3/17(Tue)

T-Bills(1-year)

1/9(Thu)

T-Bills(6-month)

1/31(Fri)

T-Bills(3-month)

2/26(Wed)

Liquidity Enhancement Auction

3/18(Wed)

T-Bills(3-month)

(remaining maturities of 15.5-39 years)

1/9(Thu)

30-year

2/4(Tue)

10-year

2/28(Fri)

T-Bills(3-month)

3/24(Tue)

Liquidity Enhancement Auction

(remaining maturities of 1-5 years)

1/10(Fri)

T-Bills(3-month)

2/6(Thu)

T-Bills(6-month)

2/28(Fri)

2-year

3/26(Thu)

40-year

1/15(Wed)

5-year

2/6(Thu)

30-year

3/3(Tue)

10-year

3/27(Fri)

T-Bills(3-month)

1/16(Thu)

T-Bills(1-year)

2/7(Fri)

T-Bills(3-month)

3/5(Thu)

30-year

3/31(Tue)

2-year

1/17(Fri)

T-Bills(3-month)

2/12(Wed)

10-yearInflation-Indexed Bonds

3/6(Fri)

T-Bills(3-month)

1/17(Fri)

20-year

2/14(Fri)

T-Bills(3-month)

3/9(Mon)

T-Bills(6-month)

1/22(Wed)

Liquidity Enhancement Auction

2/14(Fri)

Liquidity Enhancement Auction

3/10(Tue)

5-year

(remaining maturities of 5-15.5 years)

(remaining maturities of 5-15.5 years)

1/24(Fri)

T-Bills(3-month)

2/18(Tue)

5-year

3/12(Thu)

20-year

1/24(Fri)

Liquidity Enhancement Auction

2/19(Wed)

T-Bills(1-year)

3/13(Fri)

T-Bills(3-month)

(remaining maturities of 1-5 years)

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.

Top 10 PDs for Successful Bids in Auctions (Calculated by Duration) (Jul.～Dec. 2019)

Top 5 PDs for Successful Bids of Inflation-Indexed Bond (FY2018)

1

Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.

6

SMBC Nikko Securities Inc.

1

Goldman Sachs Japan Co., Ltd.

2

Daiwa Securities Co. Ltd.

7

Morgan Stanley MUFG Securities Co., Ltd.

2

Nomura Securities Co., Ltd.

3

Mizuho Securities Co., Ltd.

8

Merrill Lynch Japan Securities Co., Ltd.

3

JPMorgan Securities Japan Co., Ltd.

4

Nomura Securities Co., Ltd.

9

Deutsche Securities lnc.

4

Mizuho Securities Co., Ltd.

5

JPMorgan Securities Japan Co., Ltd.

10

Citigroup Global Markets Japan Inc.

5

Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.

-7-

Liquidity Enhancement Auctions and JGB Buy-Back

Results of Liquidity Enhancement Auctions

(Until 31 December 2019)

Amounts of

Amounts

of Bids

Average

Highest

Competitive

Auction Date

Accepted

Accepted

Accepted

Issues Re-opened

Bids

(billion yen)

(billion

Spread

Spread

yen)

20-year(159, 161, 162, 169)

10/3/2019

1,378.4

499.2

▲0.002%

0.001%

30-year(22, 24, 25, 27, 30, 31, 37, 38, 39, 41, 42, 43, 44, 45, 48, 49, 55, 59, 62, 63)

40-year(2, 5, 6, 7, 9, 10, 11)

10-year(336, 337, 338, 339, 340, 341, 345, 348, 349, 350, 353)

10/8/2019

1,604.1

598.5

0.012%

0.014%

20-year(81, 88, 89, 92, 93, 103, 104, 105, 107, 108, 109, 110, 111, 112, 113, 114, 116, 117, 119, 121,

122, 152)

30-year(10, 18)

2-year(394, 398)

11/18/2019

1,534.4

398.0

▲0.009%

▲0.007%

5-year(129, 130, 131, 132, 133, 134, 135, 136)

10-year(316, 317, 318, 321, 322, 323, 324, 325, 328, 329, 332, 333, 334, 335)

20-year(48, 50, 53, 54, 55, 56, 61, 64, 65, 70, 71, 72)

10-year(336, 337, 338, 339, 340, 342, 345, 347, 349)

11/22/2019

1,422.0

599.7

0.030%

0.035%

20-year(76, 77, 81, 82, 83, 84, 88, 93, 94, 99, 100, 106, 107, 109, 110, 111, 112, 113, 115, 116, 117, 118, 121, 122,

123, 124, 125, 126, 127, 128, 129, 132, 135, 136, 137, 140, 144, 146, 147, 148, 149, 151, 152)

30-year(2, 4, 5, 7, 8, 9, 10, 13, 17, 18)

20-year(154, 155, 156, 158, 160, 163, 164, 165, 167, 169)

12/12/2019

1,280.4

499.1

▲0.005%

0.000%

30-year(20, 23, 25, 26, 27, 28, 29, 30, 31, 32, 38, 39, 41, 43, 46, 48, 59)

40-year(7, 9, 10, 11)

10-year(336, 338, 339, 340, 341, 343, 354, 355)

12/20/2019

1,519.7

599.0

0.013%

0.018%

20-year(88, 102, 113, 114, 115, 117, 118, 122, 124, 125, 126, 127, 128, 129, 133, 144, 146, 147, 149,

150, 151, 152)

30-year(1, 12, 13)

Target Zones of Liquidity Enhancement Auctions for the Fourth Quarter of FY 2019

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

(billion yen)

Amount issued by Liquidity Enhancement Auction

Outstanding amount in the market (excluding amount issued by Liquidity Enhancement Auction)

7,000

6,500

6,000

5,500

5,000

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

JS127

JL49

JL50

JS128

JL51

JS129

JL52

JS130

JL53

JL54

JS131

JL55

JS132

JL56

JL57

JS133

JL58

JS134

JL59

JL60

JS135

JL61

JS136

JL62

JL63

JS137

JL64

JS138

JL65

JL66

JS139

JL67

JL68

JL69

JS140

JL70

JS141

JL71

JL72

JL73

JL74

JN396

JN397

JN398

313

314

JN399

JN400

JN401

315

316

JN402

JN403

JN404

317

318

JN405

JN406

319

320

321

322

323

324

325

326

327

328

329

330

331

332

333

334

335

336

337

1

(Remaining maturities)

2

5

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

(billion yen)

Amount issued by Liquidity Enhancement Auction

Outstanding amount in the market (excluding amount issued by Liquidity Enhancement Auction)

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

JL75

JL76

JL77 339 JL78 JL79 JL80 340 JL81 JL82 341 JL83 JL84 342 JL85 JL86 JL87 343 JL88 JL89 344 JL90 JL91 345 JL92 346 JL93 JL94 347 JL95 JL96 348 JL97 JL98 349

JL99 350 JL100 JL101 351 JL102

JL103

JL104

JL105

JL106

JL107

JL108

JL109 JL110 355

JL111 JL112 356

JL113 JX1

JL114

JL115

JX2 JL116 JL117 JX3 JL118 JL119 JL120 JL121 JL122 JX4 JL123 JL124 JL125 JL126 JL127 JX5 JL128 JL129 JL130 JL131 JX6 JL132 JL133 JL134 JL135 JL136 JX7 JL137 JL138 JL139 JL140 JX8 JL141 JL142 JX9 JL143 JL144 JX10 JL145 JX11 JL146 JX12 JL147 JX13 JL148

JX14 JL149

JX15

JL150

JX16

JL151

JX17

JL152

JX18

JL153 JX19

338

352

353

354

5

(Remaining maturities)

10

15.5

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

(billion yen)

Amount issued by Liquidity Enhancement Auction

Outstanding amount in the market (excluding amount issued by Liquidity Enhancement Auction)

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

JL154

JX20

JL155 JX21 JL156 JX22 JL157 JX23

JL158

JX24

JL159

JX25

JL160

JX26

JL161

JL162

JX27

JL163

JL164

JX28

JL165

JL166

JX29

JL167

JL168

JX30

JL169

JL170

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

JX56

JX57

JX58

JU1

JX59

JX60

JX61

JX62

JU2

JX63

JX64

JU3

JU4

JU5

JU6

JU7

JU8

JU9

JU10

JU11

15.5

(Remaining maturities)

20

39

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 November 2019.

Note2： All issues in the graph above will be eligible afterward.

10-yearInflation-Indexed

Buy-Back Results

(Until 31 December 2019)

Amounts of

Amounts of Bids

Average

Highest

Auction Date

Competitive Bids

Accepted

Accepted

Accepted

Issue Numbers

(billion yen)

(billion yen)

Spread (yen)

Spread (yen)

8/14/2019

91.3

20.1

▲0.18

▲0.14

20, 24

10/16/2019

99.4

20.3

▲0.134

▲0.11

18, 19, 20, 21, 22, 24

11/15/2019

98.0

20.1

0.027

0.08

17, 19, 20, 21, 22, 24

12/18/2019

85.9

20.1

▲0.083

▲0.08

17, 22, 24

-8-

JGB Secondary Market

JGB Yield Curves

Yield and Volatility (10Yr) (Until 30 November 2019)

Source: Japan Bond Trading Co.,Ltd.

Source: Bloomberg, Calculation by the Ministry of Finance

Yields of JGB

(Until 30 November 2019)

Source: Bloomberg

Long - Term Interest Rates （10Yr）

(Until 30 November 2019)

Source: Bloomberg

Break-Even Inflation Rates

(Until 30 November 2019)

5%

4%

3%

2%

1%

BEI (Japan : 10 year)

0%

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

-1%

BEI (U.K. : 10 year)

Jan-13

Jan-14

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

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.

-9-

Short-Term Interest Rates

(Until 30 November 2019)

0.5%

Call Rate (Uncollateralized Overnight)

0.4%

TIBOR 3-months(Euro-Yen)

Basic Loan Rate

0.3%

0.2%

0.1%

0.0%

-0.1%

Jan-14

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

Source: Bank of Japan, Tanshi Association, Bloomberg

JGB Over-the-Counter Trading Volume (TOKYO)

(trillion yen)

2,000

1,900

Treasury Discount Bills

1,800

1,700

Medium Term Bonds

1,600

1,500

Long Term Bonds

1,400

1,300

1,200

1,100

1,000

900

800

700

600

500

400

300

200

100

0

Jan-13

Jan-14

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

Source: Japan Securities Dealers Association

(trillion yen)

Trading Volume of 10-Year JGB Futures

140

120

100

80

60

40

20

0

Jan-13

Jan-14

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

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

(trillion yen)

Repurchase Transactions

2,500

Bond-Lending

2,000

Bond-Gensaki

1,500

1,000

500

0

Jan-13

Jan-14

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

Source: Japan Securities Dealers Association

-10-

Investor Trends and JGB Outstanding

Trends in JGBs Transactions (by investor type)

City Banks

7.0

5.0

Net Purchase

3.0

1.0

-1.0

-3.0

-5.0

-7.0

Regional banks

1.0

0.8

Net Purchase

0.6

0.4

0.2

0.0

-0.2

-0.4

-0.6

Super long-term

Net Sale

-9.0

-0.8

-1.0

Net Sale

Long-term

Medium-term

T-bills

Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct

2015

2016

2017

2018

2019

Life and non-life insurance companies

1.0

Net Purchase

0.5

0.0

Net Sale

-0.5

Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct

2015

2016

2017

2018

2019

Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct

20152016201720182019

Foreigners

26.0

24.0

Net Purchase

22.0

20.0

18.0

16.0

14.0

12.0

10.0

8.0

6.0

4.0

2.0

0.0

-2.0

Net Sale

-4.0

Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct

2015

2016

2017

2018

2019

Source: Japan Securities Dealers Association

Trends in Bank Assets by Types

City Banks

(trillion yen)

200

Loans

Cash and Deposits

150

Government Bonds

(trillion yen)

270

260

250

240

230

220

210

200

Regional Banks

Municipal Bonds

Corporate Bonds

100

Equities

Foreign Securities

50

Source: Bank of Japan

0

Jan-12Jan-13Jan-14Jan-15Jan-16Jan-17Jan-18Jan-19

50

40

30

20

10

0

Jan-12

Jan-13

Jan-14

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

Apr 2013

Nov 2019

(Actual)

(Actual)

Monetary Base

155

517

JGBs

98

479

CP

1.4

2.2

Corporate Bonds

2.9

3.3

ETFs

1.7

27.9

J-REITs

0.13

0.54

Total Assets

175

579

Source: Bank of Japan

BOJ Trends

（trillion yen）

QQE

QQE2

600

550

500

450

400

350

Total Assets

300

Monetary Base

250

JGBs

200

150

100

50

0

Apr-12

Apr-13

Apr-14

Apr-15

Apr-16

Apr-17

Apr-18

Apr-19

-11-

Transactions of Foreign Securities by Residents (by Investor types)

(trillion yen)

Banks(Banking Accounts)

Life Insurance Companies

6

3

(trillion yen)

Short-term debt securities Long-term debt securities Equity and investment fund shares

Short-term debt securities

Long-term debt securities

Equity and investment fund shares

4

Net Purchase

2.5

Net Purchase

2

2

1.5

0

1

-2

0.5

-4

Net

0

Net

-0.5

Sales

Sales

-6

-1

Jan-13

Jan-14

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

Jan-13

Jan-14

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

Source: Ministry of Finance

Source: Ministry of Finance

Transactions of Domestic Securities

by Non-Residents

(trillion yen)

10

8Net Purchase

6

4

2

0

-2

-4

-6

Net

-8

Sales

Short-term debt securities

Long-term debt securities

Equity and investment fund shares

-10

Jan-13

Jan-14

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

Source: Ministry of Finance

Foreign Investors Presence

70%

61.8%

60%

① Market Share of Foreign Investors (JGB Futures Market)

50%

40%

37.9%

30%

②Market Share of Foreign Investors (JGB Market)

20%

③JGB Holdings by Foreign Investors

12.7%

10%

0%

Mar-09

Mar-10

Mar-11

Mar-12

Mar-13

Mar-14

Mar-15

Mar-16

Mar-17

Mar-18

Mar-19

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

Outstanding of Repurchase Agreements

(by Investor types)

City Banks

Trust Banks

Insurance Companies

Foreigners

40%

35%

30%

25%

20%

15%

10%

5%

0%

Jan-13

Jan-14

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

Source: Japan Securities Dealers Association

JGBs Holdings by Foreign Investors

13

(%)

(trillion yen)

160

12

Amount of JGBHoldings (right)

12.7

Proportion of JGB Holdings (left)

144.4

11

140

10

9

120

8

7

100

6

5

80

4

3

60

2

1

40

Mar-09

Mar-10

Mar-11

Mar-12

Mar-13

Mar-14

Mar-15

Mar-16

Mar-17

Mar-18

Mar-19

Note.1: Quarterly basis.

Note.2: "JGB" includes T-Bills.

Source: Bank of Japan

-12-

Breakdown by JGB and T-Bill Holders (The end of Sep. 2019 QE)

JGB and T-Bill Holders

(trillion yen)

General Government

Others

(ex Public Pensions)

Households

9.4

2.9

0.3%

13.4

0.8%

Foreigners

Fiscal Loan Fund

1.2%

Pension Funds

144.4

0.0

32.1

12.7%

0.0%

2.8%

JGB Holders

Public Pensions

BOJ

T-Bill Holders

3.8%

43.2

500.2

Households

Life and Non-life

43.9%

General Government

Insurance,etc.

Fiscal Loan Fund

Pension Funds

Foreigners

13.4

Others

(ex Public Pensions)

223.3

0.0

32.1

79.4

1.3%

9.4

0.0

0.0%

19.6%

3.1%

7.6%

0.9%

0.0%

Public Pensions

General Government

Banks,etc.

43.2

(ex Public Pensions)

171.8

BOJ

4.1%

2.9

15.1%

10.3

0.3%

10.9%

Banks,etc.

17.4

Life and Non-life

BOJ

18.4%

Insurance,etc.

221.3

490.0

Total 1,140.7 trillion yen

46.8%

21.2%

Banks,etc.

154.4

14.8%

Foreigners

Life and Non-life

65.1

Insurance,etc.

68.7%

2.0

Total 1,046.0 trillion yen

Total 94.8 trillion yen

2.1%

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 Non-life insurance, etc." includes "Japan Post Insurance."

Breakdown of Outstanding Amount of General Bonds by Remaining Years to Maturity

（Unit: trillion yen）

900

850

800

750

700

650

594.0

600 3.6%

550 14.4%

500

4.7%

450 5.2%

5.5%

400 4.9%

350 5.2%

300 8.8%

250 8.4%

200 8.5%

150 13.0%

100

50 17.8%

0

FY2009

853.2

874.0

805.4

830.6

11.6%

11.1%

774.1

10.1%

743.9

9.4%

705.0

8.3%

7.5%

636.3

669.9

6.7%

19.2%

19.6%

20.2%

5.8%

17.7%

18.4%

4.6%

16.5%

15.6%

14.9%

4.2%

14.4%

4.2%

4.5%

4.1%

4.0%

4.6%

4.7%

4.9%

4.3%

4.9%

5.1%

4.4%

4.8%

5.2%

5.2%

4.7%

4.8%

5.0%

4.6%

5.6%

4.5%

4.5%

5.0%

5.1%

5.3%

4.7%

4.9%

4.8%

5.0%

4.3%

4.4%

4.8%

4.8%

4.5%

4.6%

5.0%

4.2%

5.0%

4.7%

4.2%

4.4%

5.2%

4.4%

4.9%

4.7%

7.8%

7.4%

7.8%

6.8%

6.8%

6.7%

7.8%

7.8%

8.4%

8.1%

8.2%

8.2%

9.0%

8.6%

8.1%

7.8%

7.1%

7.4%

7.9%

8.6%

8.1%

7.8%

7.8%

7.9%

7.7%

8.2%

7.0%

12.5%

11.9%

12.4%

12.0%

11.1%

10.6%

10.5%

10.5%

10.8%

18.3%

18.2%

17.9%

17.3%

16.4%

15.1%

14.3%

13.4%

13.1%

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

FY2018

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

（at the end of FY）

Average

6Y5M

6Y8M

7Y0M

7Y3M

7Y7M

8Y0M

8Y5M

8Y7M

8Y10M

9Y0M

YTM*

Average YTM*

6Y6M

6Y10M

7Y1M

7Y5M

7Y8M

8Y0M

8Y5M

8Y8M

8Y11M

9Y1M

(excluding saving

bonds)

*years to maturity

-13-

(trillion yen）

Time-to-Maturity Structure of Outstanding JGB（Sep. 2019）

130

120

Average remaining years to maturity： 9 years and 1 month

110

105.59

Treasury Bills

100

2-yr bonds

90

JGBs for retail investors (3-yr-Fixed-rate)

JGBs for retail investors (5-yr-Fixed-rate)

80

71.91

65.39

64.94

5-yr bonds

70

Inflation-Indexed bonds

60

57.58

JGBs for retail investors (Floating-rate)

50

45.58

43.44

42.56

10-yr bonds

43.20

15-yr-floating-rate bonds

40.62

40

20-yr bonds

30

22.35

19.46

19.02 20.84

30-yr bonds

16.63

16.37

18.13

17.92

40-yr bonds

20

19.74

18.12

9.54 10.90 9.31 11.37 10.03

6.71

7.19

8.43

10

8.47

6.34

3.66

1.96

1.96

1.99

2.17

2.28

2.50

2.75

1.74

1.26

0

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

57

58 (FY)

Source: Ministry of Finance

Scheduled redemption of JGB at maturity in January, 2020 (billion yen)

Types

The amount of redemption at maturity

Scheduled redemption date

15-YearFloating-Rate Bonds

965.8

January 20

2-Year Bonds

2,836.4

January 15

Treasury Bills

1,800.0

January 20

Total

5,602.2

Note.1: The figures are based on the outstanding JGBs at the end of November, 2019.

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.

Market-held Balance of the Inflation-Indexed Bonds

(billion yen)

(as of the end of November, 2019)

2,200

2,100

Outstanding amount (excl.

2,000

1,900

BOJ holding)

1,800

BOJ holding

1,700

1,600

1,500

1,400

1,300

1,200

1,100

1,000

900

800

700

600

500

400

300

200

100

0

17 18 19 20 21 22 23 24

Source: Ministry of Finance, Bank of Japan

(issue number)

(trillion yen)

General Bonds Issuance Amount and Outstanding

180

Outstanding (right-hand scale)

163.1

163.3

158.0

153.6

150.5

900

Issuance Amount (left-hand scale)

148.3

150

142.4

143.1

140.0

140.2

136.7

800

127.1

743.9

774.1

805.4

700

120

705.0

830.6

853.2

669.9

880.2

636.3

896.7

600

594.0

90

545.9

500

60

400

300

30

200

0

08

09

10

11

12

13

14

15

16

17

18

19

100

Note 1: Issuance Amount: revenue basis, FY2008-2017: Actual, FY2018: Supplementary budget, FY2019: Initial budget

Note 2: Outstanding: nominal basis, FY2008-2017: Actual, FY2018 Supplementary budget, FY2019: Initial budget

Source: Ministry of Finance

-14-

Economic and Financial Trends

Real GDP Growth Rate

(％) Annualized rate of Change from the previous quarter (Seasonally adjusted)

8.0

6.0

4.9

5.0

5.5

4.6

4.0

4.0

3.2

3.4

1.6

2.7

2.1

2.6

1.9

2.0

2.0

1.0

2.0

1.1

0.9

0.5

1.2

1.0

1.8

0.4

0.7

0.0

-0.2

-0.2

-2.0

-1.6

-1.5

-1.9

-2.4

-4.0

-2.8

-6.0

-8.0

-7.4

Private Demand

Public Demand

-10.0

Foreign Demand

Real GDP

-12.0

Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ

2012

2013

2014

2015

2016

2017

2018

2019

(CY)

Source: Cabinet Office

Prices

4

(%) Change from the previous year

CPI

3

CPI excluding food (excluding

alcohilic beverages) and energy

Apr.4, 2013

BOJ released QQE

2

0.5%

1

0

0.5%

-1

Source: Ministry of Internal Affairs and Communications

6.0%

Employment Conditions

（ratio） 1.8

(trillion yen)

Changes in Current Account

10

Jul, 2009

5.5%

5.5％

Unemployment rate

1.6

8

6.4

7.2

(LHS)

5.0%

6

6.1

6.1

4.8

5.9

5.7

6.0

5.8

5.0

4.9

5.0

4.5%

Nov, 2019

1.4

4.3

4

1.57

3.9

4.3

4.3

4.6

4.0%

1.2

1.7

2.0

3.3

2

2.6

3.5%

2.1

0.9

1.6

1.6

3.0%

1

0

-0.5

-1.0

2.5%

-2

0.8

2.0%

Aug, 2009

Job openings-to-applicants ratio

-4

Primary Income

Trade Balance

0.42

Nov, 2019

0.6

1.5%

(RHS)

2.2％

-6

Services

Secondary Income

Current Account

1.0%

0.4

-8

2013Q2

2013Q3

2013Q4

2014Q1 2014Q2

2014Q3 2014Q4

2015Q1

2015Q2

2015Q3

2015Q4

2016Q1

2016Q2

2016Q3 2016Q4 2017Q1

2017Q2

2017Q3

2017Q4

2018Q1

2018Q2

2018Q3

2018Q4 2019Q1

2019Q2

2019Q3

Source: Ministry of Health, Labour and Welfare

Jan-19

2013Q1

Jan-09

Jan-10

Jan-11Jan-12Jan-13Jan-14Jan-15Jan-16Jan-17Jan-18

Ministry of Internal Affairs and Communications

Source: Ministry of Finance

Monetary Base

600

(trillion yen)

500

Banknotes in Circulation

Coins in Circulation

400

Current Account Balances

300

200

100

0

Jan-13

Jan-14

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

Jan-12

Source: Bank of Japan

(2015 average=100・ Indices of Industrial Production

Seasonally Adjusted Index)

120

Production

Shipments

115

Inventory

Inventory Ratio

110

105

100

95

90

85

Jan-13

Jan-14

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

Source: Ministry of Economy, Trade and Industry

TANKAN (Business Conditions)

(Diffusion index)

30%

20%

10%

0%

-10%

Large enterprises/Manufacturing

Large enterprises/Non-Manufacturing

-20%

Small enterprises/Manufacturing

Small enterprises/Non-Manufacturing

-30%

Source: Bank of Japan

Total Value of Machinery Orders

(billion yen)

(Private Sector exc. Volatile orders)

1,000

Monthly

Quarter (Mean)

950

900

850

800

750

700

650

600

Jan-13

Jan-14

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

Source: Cabinet Office

-15-

Information

English Publications on JGBs

Frequency

URL

Debt Management

Message from the Financial Bureau

As needed

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

About JGBs

As needed

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

About the Debt Management Policy

As needed

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

JGB Issuance Plan

As needed

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

Auction Calendar

Auction Calendar

Monthly

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

Historical Data of Auction Results

Monthly

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

Topics

Product Characteristics of the JGB

As needed

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

Treasury Discount Bills (T-Bills)

As needed

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

Japanese Government Guaranteed Bonds

Annual

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

Interest Rate Swap

Semiannual

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

Taxation of Government Bonds

As needed

https://www.mof.go.jp/english/jgbs/topics/taxation2016/index.html

For Individual Investors

As needed

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

Data

Central Government Debt

Quarterly

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

Interest Rate

Daily

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

STRIPS

Monthly

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

Dialogue with the market

Advisory Councils on Government Debt Management

Each Meeting

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

Meeting of JGB Market Special Participants

Each Meeting

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

Meeting of JGB Investors

Each Meeting

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

Publications

Debt Management Report

Annual

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

JGB Newsletter

Monthly

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

To subscribe to our Newsletter mailing list,

please email: JGB-IR@mof.go.jp

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: https://www.mof.go.jp/

-16-

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Ministry of Finance of the State of Japan published this content on 21 January 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 January 2020 09:18:10 UTC