Two sources said the Japanese Ministry of Finance plans to discuss next week
with primary dealers a reduction in the size of liquidity-enhancing auctions for
5–11 year JGBs. The sources said improved supply-demand in the JGB market, as
the Bank of Japan scales back bond purchases, has reduced the need for
additional supply and prompted the ministry to consider adjusting issuance. If
implemented, it would be the first cut to these maturities since the mechanism
change in April 2026. The ministry expects to finalize next-quarter issuance
plans after month-end market consultations.