December 16, 2018 / 8:04 AM / 3 months ago

Japan plans to cut JGB issuance for 6th straight year - sources

TOKYO, Dec 16 (Reuters) - Japan plans to trim its annual government bond issuance by 3.6 percent during the financial year beginning April 1, sources with direct knowledge of the plans told Reuters on Sunday, as part of government efforts to curb public borrowing.

Japan’s Finance Ministry is planning to issue 129.4 trillion yen ($1.14 trillion) in Japanese government bonds (JGBs) in the next fiscal year, down from 134.2 trillion yen in the initial budget for the current year, two people told Reuters on condition of anonymity because the plan has not yet been announced.

That will mean the sixth consecutive year of reductions.

The government is expected to announce its initial budget plans for the 2019/2020 fiscal year this week. The Finance Ministry was not available for comment outside office hours.

Another cut would mark an ongoing decline in JGB issuance from a record high 156.6 trillion yen in the 2013 fiscal year. It would also further reduce the need for the Bank of Japan to buy bonds from the market, a pillar of the central bank’s super-loose monetary policy.

Annual issuance for two-, five-, 10- and 20-year maturities will be reduced by 1.2 trillion yen each to 24.0 trillion yen, 22.8 trillion yen, 25.2 trillion yen and 10.8 trillion yen respectively.

Issuance plans for 30- and 40-year bond maturities will remain unchanged at 8.4 trillion yen and 2.4 trillion yen respectively. ($1 = 113.3700 yen) (Reporting by Takaya Yamaguchi Editing by Paul Tait)

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