Sources: Japan to Launch New Series of Japanese Government Bonds for Retail Investors

Three government sources said on Wednesday that Japan is expected to introduce a series of new government bonds for retail investors, aiming to fill the gap left by the reduction in the scale of central bank bond purchases. The anonymous sources said that the new series will include inflation-protected bonds restricted to household purchases and ultra-long-term Japanese government bonds. This comes as Japanese government bond yields reach multi-decade highs, with investors concerned about inflation risks and the government's plans to increase the budget through additional debt issuance. The sources said that the Japanese Finance Ministry, responsible for regulating bond issuance, will hold a meeting with experts and scholars on May 26 to discuss this plan. These sources requested anonymity as they do not have permission to speak publicly. The Japanese Finance Ministry has not yet commented on the matter.