TOKYO, Sept 8 Japan's Ministry of Finance is
considering raising the amount of 40-year Japanese government
bonds (JGBs) sold at each auction to 500 billion yen ($4.92
billion) from the current level of 400 billion yen, a senior
ministry official said on Thursday.
The MOF floated the plan in a meeting with JGB primary
dealers on Thursday and will make a formal decision after
meeting with JGB investors on Friday, the official said.
The proposed increase in sales of 40-year bonds, the longest
maturity Japan issues now, came as Prime Minister Shinzo Abe
compiled plans to boost the economy, including state finance for
large projects such as the construction of maglev railways.
The ministry plans to reduce sales of unpopular
inflation-linked JGBs by 100 billion yen per auction instead to
keep the total amount of annual JGBs issues to the market steady
at 147 trillion yen this fiscal year, the official told
The MOF holds 40-year JGB auction every two months. The next
auction is scheduled for Sept. 27.
($1 = 101.54 yen)
(Reporting by Hideyuki Sano; Editing by Simon Cameron-Moore)