The draft shows that Japan plans to reduce the issuance scale of ultra-long-term government bonds.

According to the draft document, Japan will cut the scheduled government bond sales by 500 billion yen to 171.8 trillion yen in the 2025/2026 fiscal year from the original planned total; cut the size of 20-year and 30-year government bond offerings by 900 billion yen to 11.1 trillion yen and 8.7 trillion yen, respectively; Japan will increase the sale of two-year government bonds, one-year and six-month discounted treasury bills, each by 600 billion yen; An additional 500 billion yen of government bonds will be sold to households, bringing the total to 5.1 trillion yen. The revised offering plan will be presented to primary dealers for discussion at Friday's meeting. The move is aimed at easing concerns about supply-demand imbalances, with ultra-long bond yields surging to record highs last month amid recent weak auction demand. There are also some ideas to buy back some of the previously issued ultra-long-term Japanese government bonds at low interest rates to improve the balance between supply and demand.