By Theresa Barraclough
Dec. 20 (Bloomberg) -- Japan’s government will increase bond sales to private investors for the first time in four years as the nation’s first recession since 2001 reduces tax revenue.
The Ministry of Finance said it will boost bond sales to 113.3 trillion yen ($1.27 trillion) to investors such as banks and life insurers in the year starting April 1. The amount is below the 115 trillion yen forecast of primary dealers, according to the minutes of a dealer meeting on Dec. 12. Bond sales for this fiscal year will total 132.2 trillion yen, the ministry said.
The increase in issuance will help finance part of the stimulus packages aimed at helping households and small businesses as a global financial crisis tightens credit, cuts corporate spending and weakens demand for exports. Japan’s gross domestic product shrank an annualized 1.8 percent in the three months ended Sept. 30, the Cabinet Office said on Dec. 9, more than the 0.4 percent drop in its estimate reported last month.
Issuance of 40-, 30- and 20-year bonds will increase by a total of 2.2 trillion yen, while sales of benchmark 10-year bonds will stay unchanged next fiscal year, the ministry said. Sales of five- and two-year notes will increase by a total 4.8 trillion yen.
FY2009 Initial Plan:
Maturities Amount Frequency Total
per Sale of Sale Amount
-----------------------------------------------------------
40-year 200 bln yen 4 times 800 bln yen
30-year 500 bln yen 6 times 3.0 tln yen
20-year 900 bln yen monthly 10.8 tln yen
10-year 1.9 tln yen monthly 22.8 tln yen
5-year 2.0 tln yen monthly 24.0 tln yen
2-year 2.0 tln yen monthly 24.0 tln yen
1-year TB 1.9 tln yen monthly 22.8 tln yen
6-month TB ---- ---- 900 bln yen
15-year floating rate 300 bln yen 1 time 300 bln yen
10-year inflation 300 bln yen 1 time 300 bln yen
Bond liquidity sales 150 bln yen 24 times 3.6 tln yen
-----------------------------------------------------------
Total Amount: *113.3 tln yen
*The figure is the actual amount that the government plans to
sell to investors through auctions between April 1, 2009, and
March 31, 2010.
FY2008 Revised Plan (after extra budget in December):
Maturities Amount Frequency Total
per Sale of Sale Amount
-----------------------------------------------------------
40-year 200 bln yen 3 times 600 bln yen
30-year 600 bln yen 4 times 2.4 tln yen
500 bln yen 1 time 500 bln yen
20-year 800 bln yen 7 times 5.6 tln yen
900 bln yen 5 times 4.5 tln yen
10-year 1.9 tln yen monthly 22.8 tln yen
5-year 1.9 tln yen 9 times 17.1 tln yen
2.0 tln yen 3 times 6.0 tln yen
2-year 1.7 tln yen 6 times 10.2 tln yen
1.8 tln yen 4 times 7.2 tln yen
2.0 tln yen 2 times 4.0 tln yen
1-year TB 1.4 tln yen 6 times 8.4 tln yen
1.5 tln yen 3 times 4.5 tln yen
1.7 tln yen 3 times 5.1 tln yen
6-month TB ---- ---- 3.0 tln yen
15-year floating rate 600 bln yen 1 time 600 bln yen
10-year inflation 500 bln yen 3 times 1.5 tln yen
Bond liquidity sales 100 bln yen 8 times 800 bln yen
150 bln yen 10 times 1.5 tln yen
-----------------------------------------------------------
Total Amount: *106.3 tln yen
FY2008 Revised Plan (after extra budget in October):
Maturities Amount Frequency Total
per sale of Sale Amount
-----------------------------------------------------------
40-year 200 bln yen 2 times 400 bln yen
30-year 600 bln yen 4 times 2.4 tln yen
20-year 800 bln yen 7 times 5.6 tln yen
900 bln yen 5 times 4.5 tln yen
10-year 1.9 tln yen monthly 22.8 tln yen
5-year 1.9 tln yen monthly 22.8 tln yen
2-year 1.7 tln yen 6 times 10.2 tln yen
1.8 tln yen 6 times 10.8 tln yen
1-year TB 1.4 tln yen 6 times 8.4 tln yen
1.5 tln yen 6 times 9 tln yen
6-month TB ---- ---- 3.3 tln yen
15-year floating rate 600 bln yen 2 times 1.2 tln yen
10-year inflation 500 bln yen 4 times 2 tln yen
Bond liquidity sales 100 bln yen 11 times 1.1 tln yen
150 bln yen 4 times 600 bln yen
-----------------------------------------------------------
Total Amount: 105.1 tln yen
FY2008 Initial Plan:
Maturities Amount Frequency Total
per sale of Sale Amount
------------------------------------------------------------
40-year 200 bln yen 2 times 400 bln yen
30-year 600 bln yen 4 times 2.4 tln yen
20-year 800 bln yen monthly 9.6 tln yen
10-year 1.9 tln yen monthly 22.8 tln yen
5-year 1.9 tln yen monthly 22.8 tln yen
2-year 1.7 tln yen monthly 20.4 tln yen
1-year TB 1.4 tln yen monthly 16.8 tln yen
6-month TB ---- ---- 3.3 tln yen
15-year floating rate 600 bln yen 4 times 2.4 tln yen
10-year inflation 500 bln yen 6 times 3 tln yen
Bond liquidity sales 100 bln yen monthly 1.2 tln yen--
---------------------------------------------------------
Total Amount: 105.1 tln yen
To contact the reporter on this story: Theresa Barraclough in Tokyo at tbarraclough@bloomberg.net.
Posts
No comments:
Post a Comment