The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookiesbefore using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.
BANKING

MoF’s Sumi announces plans for 40-year JGB

Japan is preparing to issue a 40-year bond towards the end of 2007, according to Chikahisa Sumi, director of the debt management policy division at the Ministry of Finance.

Watanabe invites foreign investors to come and play

Speaking at Euromoney’s Japan Fixed-Income Forum in March, Sumi said: "The super-long sector of the JGB market was being traded quite actively at the end of 2006. We won’t go ahead with a 40-year bond no matter what, but we would like to test the market."

Reacting to international market sentiment is a priority for the MoF now that the domestic investor base for government debt is shrinking. Foreign holdings of Japanese government bonds account for only about 5% of the total, and Sumi conceded that withholding taxes and the relative paucity of issuance at longer maturities have been among the major limiting factors.

"Domestically we rely on the withholding tax," he said, "but we are aware that foreign investors don’t like it and we are taking steps to make it easier for them to invest in JGBs. Japanese bankers tend to act in the same way as each other, partly because they are all subject to the same regulations. We’d like to welcome to the market those who act differently, and we expect many of those people to be foreigners."

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?