Two sources said the Japanese Ministry of Finance plans to discuss next week with primary dealers a reduction in the size of liquidity-enhancing auctions for 5–11 year JGBs. The sources said improved supply-demand in the JGB market, as the Bank of Japan scales back bond purchases, has reduced the need for additional supply and prompted the ministry to consider adjusting issuance. If implemented, it would be the first cut to these maturities since the mechanism change in April 2026. The ministry

Two sources said the Japanese Ministry of Finance plans to discuss next week with primary dealers a reduction in the size of liquidity-enhancing auctions for 5–11 year JGBs. The sources said improved supply-demand in the JGB market, as the Bank of Japan scales back bond purchases, has reduced the need for additional supply and prompted the ministry to consider adjusting issuance. If implemented, it would be the first cut to these maturities since the mechanism change in April 2026. The ministry expects to finalise next-quarter issuance plans after month-end market consultations.