The government expects individual investors to buy government bonds. The Bank of Japan is reducing its purchases, while the volume of bonds to be absorbed by the market is above historical levels.
The government has indicated that it expects individual investors to serve as buyers of government bonds. This is expected to change the market’s supply-and-demand structure.
The Bank of Japan continues to pursue a policy of reducing its government bond purchases, and is believed to be reviewing its operations as it moves toward an exit from monetary easing.
The volume of government bonds to be absorbed by the market is substantially above past levels, raising concerns about uncertainty over long-term interest-rate trends.
The amount to be absorbed is expected to reach ¥62.1 trillion in fiscal 2025, the highest level in the past 20 years.