Japan will significantly reduce the issuance of ultra-long-term bonds while increasing the issuance of short-term debt.

Gate News bot news, according to Bloomberg, due to the record fluctuations in the yields of ultra-long-term bonds in recent months, concerns have arisen in the market, and Japan plans to reduce the issuance of ultra-long-term bonds this year, exceeding the levels previously announced.

According to a plan submitted at a meeting held by the Ministry of Finance with primary dealers on Friday, the Ministry proposed to reduce the total issuance of 20-year, 30-year, and 40-year bonds by 32 trillion yen (approximately 220 billion dollars) by the end of March 2026.

Previously, media outlets such as Bloomberg reported that the market generally expects the issuance of ultra-long-term bonds in this fiscal year to decrease by 23 trillion yen. The latest plans from the Ministry of Finance show that the reduction in the issuance of 20-year bonds is double that reported by the media.

The plan shows that in order to compensate for the reduction of long-term debt, the Japanese Ministry of Finance is considering increasing the issuance of short-term debt, especially 6-month bonds.

Compared to the early draft seen by Bloomberg on Thursday, this proposal has a larger reduction in ultra-long-term bonds. The early draft suggested a uniform reduction of 100 billion yen for each auction of 20-year, 30-year, and 40-year bonds, ultimately reducing the issuance of ultra-long-term bonds by 2.3 trillion yen.

Recently, Japan's bond yields have surged, affecting global markets, with traders closely monitoring Friday's meeting and the revised issuance plan. Last month, weak auction demand led to historic highs in yields for 30-year and 40-year bonds. Concerns over Japan's fiscal trajectory are growing, further intensifying the sell-off of bonds.