Sales of government bonds for individuals are growing, with issuance in fiscal 2025 reaching ¥6.1 trillion, approximately 37% higher than the previous fiscal year. The annual rate on the November issue of 5-year fixed-rate bonds was 2.39%, as purchases continue amid rising interest rates.
Total issuance of government bonds for individuals issued monthly by the government reached ¥6.1526 trillion in fiscal 2025, up 36.9% from the previous fiscal year. The rate on 5-year fixed-rate bonds rose to 2.39% per year, while the system of purchasing during the monthly offering period remains unchanged.
Government bonds for individuals can be purchased for a minimum of ¥10,000, with no upper limit. They are handled by 872 institutions, including banks and securities companies. Of the 3 types, the rates on the 3-year and 5-year fixed-rate bonds do not change, while the rate on the 10-year floating-rate bonds is reviewed every 6 months. All 3 types have a floor of 0.05% per year.
The November issue of 5-year fixed-rate bonds is expected to pay approximately ¥23,900 in annual interest before tax. The rate on the 10-year floating-rate bonds is calculated to be approximately 2.05% per year, due to the formula applying a coefficient to the yield on 10-year government bonds.
The bonds can be redeemed without a loss of principal from 1 year after issuance, but an amount equivalent to a specified charge is deducted from the interest for the preceding 2 periods. New over-the-counter government bonds are characterized by the risk of a loss of principal, while exceptional redemptions are permitted in the event of death or a disaster.
The name will change to "Government Bonds for Individuals Plus" from the December offering period, expanding eligibility for purchase to certain corporations and other entities. Outstanding issuance was ¥19.6 trillion at the end of fiscal 2025, a substantial increase from the end of the previous fiscal year, and discussions are moving forward on the design of new products and tax incentives.