What’s New ⇒ 1 JGB Issuance Plan for FY2017 2 FY2017 Budget and Tax Reform Monthly Topic ⇒ 1 Revision of Japanese National Accounts (JSNA) 2 Breakdown by JGBs (including T-Bills) Holders (end of Sep.2016)

WHAT’S NEW

1. JGB Issuance Plan for FY2017

The Ministry of Finance formulated the JGB Issuance Plan for FY2017 on December 22, 2016. The details of the issuance plan are as follows:

（Note1）Figures may not sum up to total because of rounding. （Note2） "JGB Market Issuance (Calendar Base)" refers to JGBs issued by scheduled auctions from April to next March. （Note3）Non-price competitive auction II is an auction carried out after the price-competitive auction, etc. The price offered is equal to the

weighted average accepted price in the price-competitive auction, etc. Only the JGB Market Special Participants are eligible to bid in this auction (The amount assignable to each Market Special Participant does not exceed 15% of the amount awarded to it in the price-competitive auction, etc.). The figure in the non-price competitive auction II in the FY 2017 is calculated by multiplying the figure of the JGB Market Issuance （40-Year, 30-Year, 20-Year, 10-Year, 5-Year, 2-Year Bonds and Inflation-Indexed Bonds) by 7%.

（Note4） "Adjustment between fiscal years" refers to leveling-off of issuance amount between fiscal years through front-loading issuance and deferred issuance in the accounting adjustment term.

The Ministry of Finance www.mof.go.jp

Monthly Newsletter of the Ministry of Finance, Japan JAPANESE GOVERNMENT BONDS

Jan. 2017 Contents 1. What’s New

Monthly Topic IR Special Office

…P.1 2. JGB Primary

Market …P.5

3. The Auctions for

Enhanced-Liquidity and JGB Buy-Back

…P.6 4. JGB Secondary

Market …P.7

5. Investor Trends and

JGB Outstanding …P.9

6. Economic and

Financial Trends …P.13

7. Information

…P.14

This Month’s Special!

・The capacity for the buy-back operations is up to approximately 1 trillion yen in FY2017. Details of the buy-back operations will be determined by taking market conditions into consideration, based on a discussion with market participants.

・The maximum amount of front-loading issuance of Refunding Bonds in FY2017 is 56 trillion yen.

WHAT’S NEW

(Unit: billion yen)

(Unit: billion yen)

＜Breakdown by Legal Grounds＞

＜Breakdown by Financing Methods＞

(a) (b) (b)－(a) (c) (c)－(a) (c)－(b)

34,432.0 39,034.6 4,602.6 34,369.8 -62.2 -4,664.8

6,050.0 8,901.4 2,851.4 6,097.0 47.0 -2,804.4

28,382.0 30,133.2 1,751.2 28,272.8 -109.2 -1,860.4

2,156.4 1,903.7 -252.7 1,514.5 -641.9 -389.2

16,500.0 19,600.0 3,100.0 12,000.0 -4,500.0 -7,600.0

109,114.4 109,261.6 147.1 106,079.0 -3,035.4 -3,182.5

83.2 － -83.2 1,911.8 1,828.6 1,911.8

162,202.8 169,799.9 7,597.0 153,963.3 -8,239.5 -15,836.5

Special Deficit-Financing Bonds

Construction Bonds

FY2016(Initial)

FY2016(3ｒd Supplementary

Budget)

FY2017(Initial)

Refunding Bonds

For matured Reconstruction Bonds

Reconstruction Bonds

FILP Bonds

Newly-issued bonds

Total

(a) (b) (b)－(a) (c) (c)－(a) (c)－(b)

　JGB Market Issuance (Calendar Base) 147,000.0 147,000.0 － 141,200.0 -5,800.0 -5,800.0

　Non-Price Competitive Auction II 5,620.0 8,699.4 3,079.4 7,462.0 1,842.0 -1,237.4

Adjustment between fiscal years -417.2 2,900.5 3,317.7 -698.7 -281.5 -3,599.1

152,202.8 158,599.9 6,397.0 147,963.3 -4,239.5 -10,636.5

Nonmarketable JGBs for Retail Investors 1,900.0 3,150.0 1,250.0 2,950.0 1,050.0 -200.0

OTC Sales for Households 100.0 50.0 -50.0 50.0 -50.0 －

2,000.0 3,200.0 1,200.0 3,000.0 1,000.0 -200.0

8,000.0 8,000.0 － 3,000.0 -5,000.0 -5,000.0

162,202.8 169,799.9 7,597.0 153,963.3 -8,239.5 -15,836.5

FY2016(Initial)

FY2016(3ｒｄ Supplementary

Budget)

FY2017(Initial)

Subtotal for Households

Subtotal Financed in the Market

BOJ Rollover

Total

〈Main Points in FY2017〉 The calendar-based issuance to the market for FY2017 is to be reduced by 5.8 trillion yen (from FY

2016 initial JGB Issuance Plan), mainly based on the decrease in the total issuance of JGBs by 8.2 trillion yen (from FY 2016 initial JGB Issuance Plan).

Maturity structure is designed to reflect investor demands appropriately, so that the current low interest rate situation should be utilized smoothly and effectively. ・ Super long-term (over 10 years)：Effectively increased, combining normal auctions and

“Auctions for Enhanced-Liquidity” - Decrease in 20-year (-1.2 trillion yen), increase in 40-year(+0.6 trillion yen) - Increase in Auctions for Enhanced-Liquidity for Super long-term(+1.2 trillion yen)

・ Long-term(10-year JGBs)：Decreased, reflecting weakened demand in a low interest rate environment(- 1.2 trillion yen)

・ Short- to Medium-term(5, 2-year JGBs and 1-year TBs)：Importantly decreased, based on diminished demand under negative interest rate situation(- 4.8 trillion yen)

The amount of Auctions for Enhanced-Liquidity is to be increased in remaining maturity zones where strong market demands for improved liquidity exist. ・ 0.6 trillion yen is to be added to 5-15.5 year zone and 15.5-39 year zone, respectively (+1.2

trillion yen in total).

2. FY2017 Budget and Tax Reform

On December 22, 2016, the Cabinet decided the draft FY2017 Budget with intent to continuously pursue both economic revitalization and fiscal consolidation. For more details, see; http://www.mof.go.jp/english/budget/budget/index.html The Cabinet also decided the FY2017 Tax Reform plan to increase Japan’s growth potential, encourage wage hikes and enhance capital investment. This reform plan includes expansion of the tax exemption scheme concerning cross-border Repo Transactions (Bond Gensaki Transactions). We will explain this scheme in the coming newsletter.

WHAT’S NEW

(Unit: trillion yen) ＜Market Issuance Plan by JGB Types＞

－2 －

For more details, see; http://www.mof.go.jp/english/jgbs/debt_management/plan/e121222.html

(b)－(a) (c)－(b)

0.4 × 2 times

0.5 × 4 times

2.0 × 2 times 2.0 × 2 times 1.9 × 2 times

2.1 × 10 times 2.1 × 10 times 2.0 × 10 times

9.6 9.6 ─ 10.8 1.2

─ -5.8Total 147.0 147.0 141.2 -5.8

─

Auctions forEnhanced-Liquidity

1.2

0.4 × 4 times 1.6 -0.40.4 × 4 times 1.6 -0.410-Year

Inflation-Indexed0.5 × 4 times 2.0

-1.2

TBs (1-Year) 25.0 25.0 ─ 23.8 -1.2 -1.2

2.2 × 12 times 26.4 -1.22.3 × 12 times 27.6 ─

times 26.4 -2.4 -2.4

2-Year 2.3 × 12 times 27.6

times 28.8 ─ 2.2 × 12

-1.2

5-Year 2.4 × 12 times 28.8 2.4 × 12

2.3 × 12 times 27.6 -1.22.4 × 12 times 28.8 ─

times 12.0 -1.2 -1.2

10-Year 2.4 × 12 times 28.8

times 13.2 ─ 1.0 × 12

─

20-Year 1.1 × 12 times 13.2 1.1 × 12

0.8 × 12 times 9.6 ─ 0.8 × 12 times 9.6 ─ 30-Year 0.8 × 12 times 9.6

× 6 times 3.0 0.6 0.2

(c)－(a)

40-Year 0.4 × 6 times 2.4 2.8 0.4 0.5

FY2016 (Initial) FY2016 (Revised in September) FY2017 (Initial)

　(per time) (total ; a ) 　(per time) (total ; b ) 　(per time) (total ; c)

（Note4） Details of Auctions for Enhanced-Liquidity such as the allocation of issuance amount for each zone may beadjusted in a flexible manner in response to market environment and investor demands, based on discussionwith market participants.

（Note2） The total issuance of T-Bills (Treasury Bills + Financing Bills ) is to be 2.3 trillion yen per issue.

（Note3） 10-Year Inflation-Indexed Bonds (JGBis) will be issued in Ａｐｒｉｌ, August, October and February. The issuanceamount of 10-Year Inflation-Indexed Bonds may be adjusted in a flexible manner in response to marketenvironment and investor demands, based on discussion with market participants.

（Note1） 40-Year Bonds will be issued in May, July, September, November, January and March. <Details of Auctions for Enhanced-Liquidity> Compared to

FY2016

15.5-39 Year 2.4

1-5 Year 1.2 1.2 ─

5-15.5 Year 6.0 6.6 0.6

3.0 0.6

FY2016(Estimates)

FY2017 (Initial)

1. Revision of Japanese National Accounts (JSNA) The second preliminary GDP estimate (Jul – Sep 2016) was released on Dec 8, 2016. Real GDP

expanded by 0.3% (annual rate 1.3%) from the previous quarter. The revised Japanese National Accounts (JSNA),

which incorporates the latest international standard on the System of National Account (SNA), is implemented in this second estimate. Modifications to JSNA include treating expenditures on research and development (R&D) as gross fixed capital formation, instead of intermediate consumption. The JSNA revision led to a 31.6 trillion yen increase

in FY2015 nominal GDP.

2. Breakdown by JGBs (including T-Bills) Holders (end of Sep.2016)

On December 19, 2016, the Bank of Japan (BOJ) released the Flow of Funds Accounts of the 3rd Quarter 2016. The shares of JGB (including T-Bills, hereinafter referred to as “JGBs”) holders were updated as follows:

Development of Real GDP (Quarterly, seasonally adjusted series)

460

470

480

490

500

510

520

530

540

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

After JSNA revision

Before JSNA revision

(trillion yen)

(FY)

MONTHLY TOPIC

－3－

Nominal GDP changes due to JSNA revision

Source: Cabinet Office, Government of Japan

The total amount of JGBs outstanding decreased by 14.4 trillion yen to 1,091.0 trillion yen.

BOJ increased its holdings of JGBs by 15.8 trillion yen to 413.5 trillion yen.

Foreign Investors’ holdings of JGBs increased by 1.4 trillion yen to 111.9 trillion yen.

（The end of Jun. 2016） （The end of Sep. 2016） (Preliminary)

Total ¥1,105.4 trillion Total ¥1,091.0 trillion

(Unit: trillion yen) (Unit: trillion yen)

Source: Bank of Japan “Flow of Funds Accounts”

Note2

Note1: Change from the previous quarter (seasonally adjusted) Note2: Annual rate Note3: The Figures in () indicate contributions to Changes in GDP. Source: Cabinet Office, Government of Japan

Source: Cabinet Office, Government of Japan

Note1

(％)

20167～9 10～12 1～3 4～6 7～9

0.2 -0.4 0.7 0.5 0.3 *** 1.30.3 -0.5 0.3 0.5 -0.0 *** -0.0

(0.3) (-0.5) (0.3) (0.5) *** (-0.0) ***0.3 -0.7 0.1 0.9 -0.1 (-0.1) -0.40.5 -0.7 0.4 0.2 0.3 (0.2) 1.30.5 -0.8 0.4 0.2 0.3 (0.2) 1.3

Excluding imputed Rent 0.6 -1.0 0.4 0.2 0.3 (0.1) 1.31.8 -1.2 1.3 3.5 2.6 (0.1) 10.90.6 0.4 -0.3 1.4 -0.4 (-0.1) -1.4

(-0.2) (-0.1) (-0.1) (0.2) *** (-0.3) ***0.2 0.0 1.0 -0.6 0.3 (0.1) 1.00.4 0.7 1.3 -1.1 0.3 (0.1) 1.2

-0.5 -2.8 -0.7 1.6 0.1 (0.0) 0.3(-0.0) (0.0) (0.0) (-0.0) *** (-0.0) ***(-0.1) (0.1) (0.4) (-0.1) *** (0.3) ***

2015 20167～9

Gross Domestic Product

Domestic Demand

Private DemandPrivate Consumption

Consumption of Households

Private Residential InvestmentPrivate Non-Resi. InvestmentChange in Private Inventory

Public DemandGovernment ConsumptionPublic InvestmentChange in Public Inventory

Net Exports of Goods & Services

1.1

-0.4 -0.4

0.1

1.2 1.1

0.6

-0.2

1.2

-1.8

-0.2

0.5

1.5

-0.1

0.2

-0.4

0.7 0.50.3

-3.5

-3.0

-2.5

-2.0

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ

2012 2013 2014 2015 2016

(％)

Private Demand Public DemandForeign Demand Real GDP

Contributions to change from the previous quarter (Seasonally adjusted)

General Government

(ex Public Pensions)

2.5

0.2%Fiscal Loan Fund

0.0

0.0%

BOJ

397.7

36.0%

Banks,etc.

264.3

23.9%

Life and Non-life

Insurance

218.9

19.8%

Public Pensions

52.7

4.8%

Pension Funds

34.3

3.1%

Foreigners

110.5

10.0%

Households

14.0

1.3%

Others

10.6

1.0%

General Government

(ex Public Pensions)

2.4

0.2% Fiscal Loan Fund

0.0

0.0%

BOJ

413.5

37.9%

Banks,etc.

244.0

22.4%

Life and Non-life

Insurance

211.8

19.4%

Public Pensions

51.0

4.7%

Pension Funds

33.0

3.0%

Foreigners

111.9

10.3%

Households

13.3

1.2%

Others

10.1

0.9%

For more details, see; http://www.esri.cao.go.jp/en/sna/data/sokuhou/files/2016/toukei_2016.html

Happy New Year! May this be a happy and fruitful year for you all! In this column, I would like to introduce the New Year customs in Japan. In Japan, as some of you might know, we usually have the New Year holidays from January 1st to 3rd, which are called “Oshogatsu.” We have various customs such as “Hatsumode” (visiting a shrine or a temple), “Otoshidama” (New Year’s gift from seniors to juniors), and “Hagoita” (Battledore, a game like badminton) during the holidays. On the other hand, we also have customs that we “must not do.” They are housework including housecleaning. Japanese people traditionally believe that a god called “Toshigami-sama” comes to their houses in the New Year, and they have to welcome this god. In this regard, cleaning the house is considered as an act of driving the god away. In addition, the New Year holidays are considered as a period to free people from housework. Therefore, most Japanese people still have customs to clean their houses and to cook traditional dishes called “Osechi” (please see picture) around the end of the year so that they do not need to do it in the New Year. The origins of the customs above are merely some of the theories. It is very interesting that all the customs we thoughtlessly follow have different origins. Do you have your own New Year customs? Do you know their origins?

Looking back on our IR activity after the annual personnel reshuffling in last July, we conducted 4 overseas IR tours covering 11 countries and 14 cities to meet with debt management authorities and investors such as central banks and pension funds. Also, we had meetings with many foreign investors in Japan. Thank you for having given us precious opportunities. We were able to hear your valuable comments. We will unite to carry out JGB IR activities continuously in 2017, and we look forward to meeting you!

-4-

IR SPECIAL OFFICE

If you have any questions regarding the contents of this newsletter, please do not hesitate to contact us at: JGB-IR@mof.go.jp

<Picture>

Auction Results

（Bonds）

Auction Date Type of Security Issue Number Maturity Date Nominal

Coupon

Amounts of Competitive

Bids (billion yen)

Amounts of Bids

Accepted (billion yen)

Yield at the Lowest

Accepted Price

Yield at the Average

Price

Amounts of Non-Competitive Bids Tendered

/Accepted (billion yen)

Amounts of Bids Accepted at the

Non-price- competitive Auction Ⅰ (billion yen)

Amounts of Bids Accepted at the

Non-price- competitive Auction Ⅱ (billion yen)

10/4/2016 10-year 344 9/20/2026 0.1% 8,288.3 2,170.9 ▲0.056% ▲0.058% 0.997 227.3 356.1 10/6/2016 10-year Inflation-Indexed Bonds 21 3/10/2026 0.1% 1,282.6 399.9 ▲0.391% - - - 25.2 10/12/2016 30-year 52 9/20/2046 0.5% 2,634.7 722.9 0.519% 0.514% - 76.3 118.9 10/14/2016 5-year 129 9/20/2021 0.1% 9,375.8 2,175.1 ▲0.201% ▲0.201% - 224.2 358.5 10/25/2016 20-year 158 9/20/2036 0.5% 3,455.8 990.6 0.367% 0.364% - 108.8 115.9 10/27/2016 2-year 370 11/15/2018 0.1% 9,188.8 2,084.5 ▲0.235% ▲0.237% - 214.8 314.6 11/8/2016 10-year 344 9/20/2026 0.1% 9,422.1 2,165.7 ▲0.055% ▲0.056% 1.167 232.5 358.7 11/10/2016 30-year 52 9/20/2046 0.5% 2,526.7 722.2 0.519% 0.511% - 76.6 0.0 11/15/2016 5-year 129 9/20/2021 0.1% 7,722.5 2,169.0 ▲0.150% ▲0.160% 0.100 230.6 0.0 11/17/2016 20-year 158 9/20/2036 0.5% 3,169.4 999.3 0.477% 0.456% - 100.2 131.8 11/25/2016 40-year 9 3/20/2056 0.4% 1,488.1 499.7 0.725% - - - 74.1 11/29/2016 2-year 371 12/15/2018 0.1% 8,895.4 2,080.9 ▲0.154% ▲0.156% - 218.4 307.4 12/1/2016 10-year 345 12/20/2026 0.1% 8,300.1 2,198.1 0.040% 0.032% 3.250 198.2 13.5 12/8/2016 30-year 53 12/20/2046 0.6% 2,064.6 723.9 0.633% 0.617% - 75.7 0.0 12/13/2016 5-year 130 12/20/2021 0.1% 9,738.0 2,174.7 ▲0.057% ▲0.063% - 224.7 65.5 12/15/2016 20-year 159 12/20/2036 0.6% 3,323.3 993.1 0.656% 0.645% - 105.9 142.2

Auction Results （Treasury Discount Bills）

Auction Date Type of Security Issue Number Maturity Date

Amounts of Competitive Bids

(billion yen)

Amounts of Bids Accepted

(billion yen)

Yield at the Lowest

Accepted Price

Yield at the Average

Price

Amounts of Bids Accepted at the

Non-price- competitive Auction Ⅰ (billion yen)

10/5/2016 6-month 637 4/10/2017 13,299.30 3,176.27 ▲0.3643% ▲0.3743% 323.70 10/6/2016 3-month 638 1/16/2017 15,985.40 3,992.38 ▲0.3120% ▲0.3274% 387.60 10/13/2016 3-month 639 1/23/2017 14,882.75 3,947.27 ▲0.2735% ▲0.2925% 402.70 10/18/2016 1-year 640 10/20/2017 10,591.60 2,269.29 ▲0.3080% ▲0.3219% 230.70 10/20/2016 3-month 641 1/30/2017 16,525.90 3,986.37 ▲0.2493% ▲0.2545% 393.60 10/27/2016 3-month 642 2/6/2017 14,948.30 3,981.97 ▲0.2456% ▲0.2568% 398.00 11/2/2016 3-month 643 2/13/2017 15,015.30 3,991.43 ▲0.2568% ▲0.2623% 408.50 11/8/2016 6-month 644 5/12/2017 13,692.50 3,171.37 ▲0.2947% ▲0.3066% 328.60 11/10/2016 3-month 645 2/20/2017 15,031.00 3,982.56 ▲0.2661% ▲0.2765% 387.40 11/16/2016 1-year 646 11/20/2017 8,434.10 2,279.69 ▲0.2500% ▲0.2749% 220.30 11/17/2016 3-month 647 2/27/2017 14,561.95 3,977.15 ▲0.2716% ▲0.2891% 392.80 11/24/2016 3-month 648 3/6/2017 14,671.40 4,015.14 ▲0.2754% ▲0.2873% 404.80 12/1/2016 3-month 649 3/13/2017 18,534.80 3,982.00 ▲0.3330% ▲0.3408% 418.00 12/7/2016 6-month 650 6/12/2017 9,916.55 3,181.37 ▲0.3523% ▲0.3603% 318.60 12/8/2016 3-month 651 3/21/2017 16,206.20 3,990.87 ▲0.3903% ▲0.4032% 419.10 12/15/2016 3-month 652 3/27/2017 14,181.00 4,011.25 ▲0.3925% ▲0.4196% 418.70 12/16/2016 1-year 653 12/20/2017 6,196.80 2,294.98 ▲0.3000% ▲0.3388% 205.00 12/21/2016 3-month 654 4/6/2017 14,995.90 4,022.87 ▲0.3952% ▲0.4125% 407.10

Auction Calendar for Dec. 2016 – Feb. 2017 Auction Date Issue Auction Date Issue Auction Date Issue Auction Date Issue 12/1(Thu) T-Bills (3-month) 12/27(Tue) 2-year 1/26(Thu) T-Bills (3-month) 2/16(Thu) Auctions for Enhanced-liquidity 12/1(Thu) 10-year 1/5(Thu) T-Bills (3-month) 1/26(Thu) Auctions for Enhanced-liquidity 2/21(Tue) Auctions for Enhanced-liquidity 12/6(Tue) Auctions for Enhanced-liquidity 1/5(Thu) 10-year 1/30(Mon) 2-year 2/23(Thu) T-Bills (3-month) 12/7(Wed) T-Bills (6-month) 1/6(Fri) T-Bills (6-month) 2/2(Thu) T-Bills (3-month) 2/23(Thu) 20-year

12/8(Thu) T-Bills (3-month) 1/11(Wed) 30-year 2/2(Thu) 10-year 2/28(Tue) 2-year

12/8(Thu) 30-year 1/12(Thu) T-Bills (3-month) 2/7(Tue) 10-year Inflation-Indexed Bonds

12/13(Tue) 5-year 1/13(Fri) Auctions for Enhanced-liquidity 2/8(Wed) T-Bills (6-month) 12/15(Thu) T-Bills (3-month) 1/17(Tue) 20-year 2/9(Thu) T-Bills (3-month) 12/15(Thu) 20-year 1/18(Wed) T-Bills (1-year) 2/9(Thu) 30-year 12/16(Fri) T-Bills (1-year) 1/19(Thu) T-Bills (3-month) 2/14(Tue) 5-year

12/21(Wed) T-Bills (3-month) 1/19(Thu) 5-year 2/15(Wed) T-Bills (1-year) 12/21(Wed) Auctions for Enhanced-liquidity 1/24(Tue) 40-year 2/16(Thu) T-Bills (3-month)

Top 10 PDs by Total Purchase in Auctions (Calculated by Duration) (Apr. 2016 ～ Sep. 2016) 1 Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. 6 SMBC Nikko Securities Inc. 2 Nomura Securities Co., Ltd. 7 BNP Paribas Securities (Japan) Limited 3 Daiwa Securities Co. Ltd. 8 Deutsche Securities lnc. 4 Mizuho Securities Co., Ltd. 9 Goldman Sachs Japan Co., Ltd. 5 Merrill Lynch Japan Securities Co., Ltd. 10 Morgan Stanley MUFG Securities Co., Ltd.

2 JGB PRIMARY MARKET

Note.1: The above calendar may be changed or added in light of changes in circumstances. In such cases, it will be announced in advance. Note.2: Each issue amount will be announced about one week prior to each auction date.

－5－

(Until 22 December 2016)

(Until 22 December 2016)

Results of Auctions for Enhanced-Liquidity

Auction Date

Amounts of Competitive

Bids (billion yen)

Amounts of Bids

Accepted (billion yen)

Average Accepted Spread

Highest Accepted Spread

Issues Re-opened

10/18/2016 1,074.3 398.8 +0.001% +0.005% 20-year(137,139,147,150,157) 30-year(7,13,16,17,19, 20,21,22,25,26,28,29,30,31,32,33,34,35,36,37,38,41,43,48,49,50,51) 40-year(1,2,3,4,6,8)

10/20/2016 1,851.3 499.6 ▲0.015% ▲0.011% 20-year(87,88,89,106,107,108,110,120,125)

11/2/2016 986.9 199.5 ▲0.016% ▲0.013% 2-year(358) 10-year(290,291,292,294,298,299,301,302,303,304,308,315,316) 20-year(45,49,51)

11/22/2016 1,561.2 497.8 ▲0.014% ▲0.012%

10-year(319,320,321,325,328,329, 332,333,336,338) 20-year(65,66,68,69,70,71,72,73,75,76,77,85,86,87,88,89,90,91,92,93,94,95,98, 103,115,117,125,129) 30-year(2,4,5)

12/6/2016 732.1 399.7 +0.018% +0.035% 20-year(137,141,142,148,149,151,152,154,157) 30-year(7,19,20,21,23, 27,30,31,32,33,34,35,36,37,38,39,40,43,46,48,49,50,51) 40-year(2,4,8)

12/21/2016 1,798.8 498.5 ▲0.006% ▲0.003% 10-year(319,320,321,322,323,324,325,326,327,328,332,334,335,341,342) 20-year(55,64,67,68,69,70,72,75,76,79,80,84,92,95,96,117,128,129,130) 30-year(4,6)

Target Zones of the Auction for Enhanced-Liquidity for the Third Quarter of FY 2016

10-year Inflation-Indexed

Auction Date Amounts of

Competitive Bids (billion yen)

Amounts of Bids Accepted

(billion yen)

Average Accepted

Spread (yen)

Highest Accepted

Spread (yen) Issue Numbers

8/17/2016 90.9 20.1 ▲0.267 ▲0.160 17,18,20,21 10/13/2016 112.7 20.0 ▲0.402 ▲0.300 17,21

3 THE AUCTIONS FOR ENHANCED-LIQUIDITY AND JGB BUY-BACK

①Remaining maturity : approx.1‐～5‐year

③Remaining maturity : approx.15.5‐～39‐year

Note.1： JN shows 2‐year JGBs. JS shows 5‐year JGBs. JL shows 20‐year JGBs. JX shows 30‐year JGBs. JU shows 40‐year JGBs. Outstanding amount is as of the end of September 2016. Note.2： All issues in the graph above will be eligible afterward.

Buy-back Results

(Until 22 December 2016)

(Until 30 November 2016)

－6－

②Remaining maturity : approx.5‐～15.5‐year

0500

1,0001,5002,0002,5003,0003,5004,0004,5005,0005,5006,0006,5007,0007,500

JN35

8

JN35

9

JS10

7

JS10

8

289

JN36

0

JN36

1

JN36

2

JS10

9

JS11

0

JS11

1

290

291

292

JL38

JL39

JN36

3

JN36

4

JN36

5

JS11

2

JS11

3

293

294

295

JN36

6

JN36

7

JN36

8

JS11

4

JS11

5

296

JL40

JS11

6

297

298

JS11

7

299

300

JL41

JL42

JS11

8

JS11

9

301

302

JS12

0

JS12

1

303

304

JL43

JS12

2

305

JS12

3

306

307

JL44

JL45

JS12

4

308

309

JL46

JS12

5

310

311

JL47

JS12

6

312

JL48

JS12

7

313

314

JL49

JL50

JS12

8

315

316

JL51 31

7

318

JL52

Amount issued by the Auction for Enhanced-liquidity Outstanding amount in the market (excluding amount issued by the Auction for Enhanced-liquidity)

1 2 5

(Remaining maturities)

（billion yen)

0500

1,0001,5002,0002,5003,0003,5004,0004,5005,0005,5006,0006,5007,0007,500

319

320

JL53

JL54 32

132

2JL

55 323

324

JL56

JL57 32

5JL

58 326

327

JL59

JL60 32

8JL

61 329

JL62

JL63 33

033

1JL

64 332

JL65

JL66 33

3JL

67JL

68JL

69 334

JL70

JL71 33

5JL

72 336

337

JL73

JL74 33

8JL

75JL

76JL

77 339

JL78

JL79

JL80 34

0JL

81JL

82 341

JL83

JL84 34

2JL

85JL

86JL

87 343

JL88

JL89

JL90

JL91

JL92

JL93

JL94

JL95

JL96

JL97

JL98

JL99

JL10

0JL

101

JL10

2JL

103

JL10

4JL

105

JL10

6JL

107

JL10

8JL

109

JL11

0JL

111

JL11

2JL

113

JX1

JL11

4JL

115

JX2

JL11

6JL

117

JX3

JL11

8JL

119

JL12

0JL

121

JL12

2JX

4JL

123

JL12

4JL

125

JL12

6JL

127

JX5

JL12

8JL

129

JL13

0JL

131

JX6

JL13

2JL

133

JL13

4JL

135

JL13

6

Amount issued by the Auction for Enhanced-liquidity Outstanding amount in the market (excluding amount issued by the Auction for Enhanced-liquidity)

5 10 15.5

(Remaining maturities)

（billion yen)

0500

1,0001,5002,0002,5003,0003,5004,000

JX7

JL13

7JL

138

JL13

9JL

140

JX8

JL14

1JL

142

JX9

JL14

3JL

144

JX10

JL14

5JX

11JL

146

JX12

JL14

7JX

13JL

148

JX14

JL14

9JX

15JL

150

JX16

JL15

1JX

17JL

152

JX18

JL15

3JX

19JL

154

JX20

JL15

5JX

21JL

156

JX22

JL15

7JX

23JX

24JX

25JX

26JX

27JX

28JX

29JX

30JX

31JX

32JX

33JX

34JX

35JX

36JX

37JX

38JX

39JX

40JX

41JX

42JX

43JX

44JX

45JX

46JX

47JX

48JX

49JX

50JX

51JU

1JU

2JU

3JU

4JU

5JU

6JU

7JU

8

Amount issued by the Auction for Enhanced-liquidity Outstanding amount in the market (excluding amount issued by the Auction for Enhanced-liquidity)（billion yen)

(Remaining maturities)15.5 20 39

-1%

0%

1%

2%

3%

4%

5%

Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

Japan United States

United Kingdom Germany

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

2-year bond 5-year bond 10-year bond

20-year bond 30-year bond 40-year bond

-0.4%

-0.2%

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

0%

1%

2%

3%

4%

5%

6%

7%

8%

Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16

Volatility Yield (right scale)

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2015/6/302015/9/302015/12/302016/9/302016/10/312016/11/30

40353020 25151050

Note: BEI (Japan : old JGBi) is calculated based on the compound interest rate of the old Inflation-Indexed Bonds (issue number 16 with current maturity of 1 years and 7months) and the 10-Year Bonds (issue number 293 with current maturity of 1 years and 7months). BEI (Japan : 10 year) is calculated based on the compound interest rate of the new Inflation-Indexed Bonds and the 10-Year Bonds.

Source: Japan: Calculation by the Ministry of Finance based on the information on interest rates offered by NIKKEI QUICK U.S.A., U.K. : Bloomberg

4 JGB SECONDARY MARKET JGB Yield Curves

Source: Japan Bond Trading Co.,Ltd.

Yields of JGB

Long - Term Interest Rates （10Yr） Source: Bloomberg

Source: Bloomberg

－7－

Yield and Volatility (10Yr)

Break-Even Inflation Rates

Source: Bloomberg, Calculation by the Ministry of Finance

(Until 30 November 2016)

(Until 30 November 2016)

(Until 30 November 2016)

(Until 30 November 2016)

-3%

-2%

-1%

0%

1%

2%

3%

4%

Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

BEI (Japan : old JGBi) BEI (Japan : 10 year)

BEI (U.K. : 10 year) BEI (U.S.A. : 10 year)

0

500

1,000

1,500

2,000

2,500

Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

Bond-Lending

Bond-Gensaki

0

20

40

60

80

100

120

140

160

180

200

Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

0

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

Treasury Discount Bills

Medium Term Bonds

Long Term Bonds

Short-Term Interest Rates

Source: Bank of Japan; Japanese Banker Association

JGB Over-the-Counter Trading Volume (TOKYO)

Trading Volume of 10-Year JGB Futures

Repurchase Transactions

－8－

Source: Japan Securities Dealers Association

Source: Tokyo Stock Exchange (until Mar.2014), Osaka Exchange (from Apr. 2014)

Source: Japan Securities Dealers Association

(trillion yen)

(trillion yen)

(trillion yen)

(Until 30 November 2016)

-0.1%

0.0%

0.1%

0.2%

0.3%

0.4%

0.5%

Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

Call Rate (Uncollateralized Overnight)

TIBOR 3-months (Euro-Yen)

Basic Loan Rate

Apr 2013(Actual)

Nov 2016(Actual)

Monetary Base 155 420

JGBs 98 357

CP 1.4 2.3

Corporate Bonds 2.9 3.3

ETFs 1.7 10.7

J-REITs 0.13 0.35

Total Assets 175 471 0

50

100

150

200

250

300

350

400

450

500

Apr-12 Oct-12 Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16

Total Assets

Monetary Base

JGBs

QQE2QQE（trillion yen）

0

10

20

30

40

50

Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

180190200210220230240

0

20

40

60

80

100

120

140

Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

160

180

200

Super long-term

Long-term

Medium-term

T-bills

-9.0

-7.0

-5.0

-3.0

-1.0

1.0

3.0

5.0

Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct

City Banks

Net Purchase

Net Sale

2013 2014 2015 2016

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct

Regional banks

Net Purchase

Net Sale

2013 2014 2015 2016

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct

Life and non-life insurance companies

Net Purchase

Net Sale

2013 2014 2015 2016

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

22.0

24.0

Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct

Foreigners

Net Purchase

Net Sale

2013 2014 2015 2016

(unit: trillion yen)(unit: trillion yen)

(unit: trillion yen) (unit: trillion yen)

－9－

Trends in Bank Assets by Types

5 INVESTOR TRENDS AND JGB OUTSTANDING Trends in JGBs Transactions (by investor type)

BOJ Trends

Regional Banks City Banks

Source: Bank of Japan

(trillion yen) (trillion yen)

Loans

Cash and Deposits

Government Bonds

Municipal Bonds

Corporate Bonds

Equities

Foreign Securities

Source: Bank of Japan

Source: Japan Securities Dealers Association

59.1

63.3 67.9

55.2 55.6

55.0 52.2 49.3 46.4

52.1

58.1 56.5

61.8 67.8

77.0 78.3 76.6 81.8

86.1

82.6 81.9

81.7 78.9

83.8 81.5

84.0 87.2

93.0 97.7

94.9

100.5

108.4

109.7 110.5 111.9

7.4

8.0

8.6

6.9

7.0 6.8 6.4

6.0 5.6

6.0

6.6 6.4

7.1 7.5

8.4 8.5 8.3 8.7 9.1

8.6 8.5 8.4 8.1

8.5 8.2 8.3

8.6 9.1

9.4 9.2

9.7

10.5 10.2

10.0 10.3

20

40

60

80

100

120

1

2

3

4

5

6

7

8

9

10

11

Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16

Amount of JGB Holdings (right)

Proportion of JGB Holdings (left)

(trillion yen)

%

%

%

%

%

%

%

%

%

%

%

10.3%

32.0%

47.9%

0%

10%

20%

30%

40%

50%

60%

Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16

①Market Share of Foreign Investors (JGB Futures Market)

②Market Share of Foreign Investors (JGB Market)

③JGB Holdings by Foreign Investors

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

City Banks Trust Banks Insurance Companies Foreigners

-5

-4

-3

-2

-1

0

1

2

3

4

Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

Short-term debt securities Long-term debt securities Equity and investment fund shares

Net

Purchase

Net

Sales

-1

-0.5

0

0.5

1

1.5

2

2.5

3

Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

Short-term debt securities Long-term debt securities Equity and investment fund shares

Net

Purchase

Net

Sales

-8

-6

-4

-2

0

2

4

6

8

10

Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

Short-term debt securities Long-term debt securities Equity and investment fund shares

Net

Purchase

Net

Sales

－10－

JGBs Holdings by Foreign Investors

Banks(Banking Accounts) Life Insurance Companies

Transactions of Domestic Securities by Non-Residents

Note: “JGB” includes T-Bills. Source: Bank of Japan

Source: Ministry of Finance Source: Japan Securities Dealers Association

Outstanding of Repurchase Agreements (by Investor types)

Transactions of Foreign Securities by Residents (by Investor types)

Source: Ministry of Finance

Foreign Investors Presence

Note.1: Quarterly basis. Note.2: “JGB” includes T-Bills. The figures of ②excludes dealers’ transactions. Source: Bank of Japan, Japan Securities Dealers Association, Tokyo Stock Exchange,

Osaka Exchange

(trillion yen)

(trillion yen)

(trillion yen)

Source: Ministry of Finance

JGB and T-Bill Holders

－11－

Breakdown by JGB and T-Bill Holders (The End of Sep. 2016 QE)

Source: Bank of Japan “Flow of Funds Accounts (Preliminary Figures)”

Note.1: "JGB" includes FILP Bonds. "T-Bill" is the sum of "Treasury Bills (TBs)" and "Financial Bills (FBs)" with a maturity of 1 year or less and TBs and FBs have been jointly issued since February 2009.

Note.2: "Banks, etc." includes "Japan Post Bank", "Securities investment trust" and "Securities Companies". Note.3: "Life and Nonlife insurance" includes Japan Post Insurance.

(trillion yen)

Breakdown of Outstanding Amount of General Bonds by Remaining Years to Maturity

T-Bill Holders

Total 119.9 trillion yen

JGB Holders

Total 971.1 trillion yen

Total 1,091.0 trillion yen

0

50

100

150

200

250

300

350

400

450

500

550

600

650

700

750

800

850

FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015

20.3% 18.6% 17.0% 17.8% 18.3% 18.2% 17.9% 17.3% 16.4% 15.1%

12.8% 11.5% 11.4%13.0% 12.5% 11.9% 12.4% 12.0% 11.1% 10.6%

8.3%8.2% 8.9%

8.5% 7.9% 8.6% 8.1% 7.8% 7.8% 7.9%8.3% 9.0% 9.2%8.4%

9.0% 8.6% 8.1% 8.1% 8.2% 7.8%8.5% 8.6% 8.4%

8.8%8.4% 7.8%

7.8% 7.8% 7.4% 7.8%

4.2% 4.6% 5.3%

5.2%4.7%

4.9%4.4% 4.2% 5.0% 4.2%

4.8% 5.6% 5.6%

4.9%5.2%

4.6%4.5%

5.0% 4.3% 4.4%

5.8% 6.0% 5.5%

5.5%4.8%

4.8%5.3%

4.5% 4.5% 5.0%

6.3% 5.9% 6.2%

5.2%5.1%

5.6%4.7%

4.8% 5.2% 4.9%

5.4% 5.5% 5.0%

4.7%5.2%

4.4%4.3%

4.6% 4.2% 4.5%

13.8% 14.5% 14.8%

14.4%

14.4%14.9%

15.6%16.5%

17.7%18.4%

1.6% 2.0% 2.7%

3.6%

4.6%

5.8%

6.7%

7.5%8.3%

9.4%

20 yrs-

10-20 yrs

9-10 yrs

8-9 yrs

7-8 yrs

6-7 yrs

5-6 yrs

4-5 yrs

3-4 yrs

2-3 yrs

1-2 yrs

-1 yr

（trillion yen）

（at the end of FY）

531.7 541.5 545.9594.0

636.3

669.9

705.0

743.9

774.1

*years to maturity

805.4

Average

YTM* 5Y9M 6Y1M 6Y3M 6Y5M 6Y8M 7Y0M 7Y3M 7Y7M 8Y0M 8Y5M

Average YTM*

(excluding saving

bonds)5Y8M 6Y1M 6Y4M 6Y6M 6Y10M 7Y1M 7Y5M 7Y8M 8Y0M 8Y5M

General Government

(ex Public Pensions)

2.4

0.2%

Fiscal Loan Fund

0.0

0.0%

BOJ

356.8

36.7%

Banks,etc.

239.9

24.7%

Life and Non-life

Insurance

209.5

21.6%

Public Pensions

51.0

5.3%

Pension Funds

33.0

3.4%

Foreigners

55.1

5.7%

Households

13.3

1.4%

Others

10.1

1.0%

General Government

(ex Public Pensions)

0.0

0.0%Fiscal Loan Fund

0.0

0.0%

BOJ

56.7

47.3%

Banks,etc.

4.1

3.4%Life and Non-life Insurance

2.3

1.9%

Public Pensions

0.0

0.0%

Pension Funds

0.0

0.0%

Foreigners

56.8

47.4%

Households

0.0

0.0%

Others

0.0

0.0%

General Government

(ex Public Pensions)

2.4

0.2% Fiscal Loan Fund

0.0

0.0%

BOJ

413.5

37.9%

Banks,etc.

244.0

22.4%

Life and Non-life

Insurance

211.8

19.4%

Public Pensions

51.0

4.7%

Pension Funds

33.0

3.0%

Foreigners

111.9

10.3%

Households

13.3

1.2%

Others

10.1

0.9%

Types The amount of redemption at maturity Scheduled redemption date

2-Year Bonds 2,801.9 January 15

Treasury Bill 3,419.5 January 20

Total 6,221.4

Source: Ministry of Finance

Time-to-Maturity Structure of Outstanding JGB（Sep. 2016）

General Bonds Issuance Amount and Outstanding

Note 1: Issuance Amount: revenue basis, FY2004-2015: actual, FY2016 initial budget Note 2: Outstanding: nominal basis, FY2003-2015: actual, FY2016: estimates Source: Ministry of Finance

Market-held Balance of the Inflation-Indexed Bonds (as of November 30, 2016)

(trillion yen)

Scheduled redemption of JGB at maturity in January, 2017

Note.1: The figures are based on the outstanding JGBs at the end of November, 2016. Note.2: The figures are the scheduled redemption at maturity and may be different from the actual redemption due to Buy-back of JGBs. Note.3: The figures do not include "JGB for Retail Investors". Note.4: If the redemption date coincides with bank holiday, the payment of redemption is carried out on the following business day. Note.5: Figures may not sum up to total because of rounding.

(billion yen)

－12－

Source: Ministry of Finance, Bank of Japan

499.0526.9 531.7 541.5 545.9

594.0636.3

669.9705.0

743.9 774.1 805.4837.8119.9

136.8 135.6 124.6 127.1

142.4 143.1

163.1 163.3 153.6 158.0 150.5

145.7

100

200

300

400

500

600

700

800

900

0

30

60

90

120

150

180

04 05 06 07 08 09 10 11 12 13 14 15 16

Outstanding (right-hand scale) Issuance Amount (left-hand scale)

62.21

102.92

76.83

63.1268.44

44.72

35.8239.7839.28

42.06

20.00

10.5711.5814.2015.9115.4817.8817.9019.7918.95

9.343.75 4.68 5.25 6.25 6.60 6.00 8.06 9.36 10.58

3.350.81 1.28 1.30 1.92 1.86 1.91 2.06 2.20 1.44

0

10

20

30

40

50

60

70

80

90

100

110

16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55

(trillion yen）

(FY)

Treasury Bills2-yr bondsJGBs for retail investors (3-yr-Fixed-rate)JGBs for retail investors (5-yr-Fixed-rate)5-yr bondsInflation-Indexed bondsJGBs for retail investors (Floating-rate)10-yr bonds15-yr-floating-rate bonds20-yr bonds30-yr bonds40-yr bonds

Average remaining years to maturity： 8 years and 6 months

0100200300400500600700800900

1,0001,1001,2001,3001,4001,5001,6001,7001,8001,9002,0002,1002,200

10 11 12 13 14 15 16 17 18 19 20 21

(billion yen)

(issue number)

Outstanding amount (excl. BOJ holding)

BOJ holdingOld type

(without floor)

500

600

700

800

900

1,000

1,100

Jan-

09

Apr-

09

Jul-0

9

Oct

-09

Jan-

10

Apr-

10

Jul-1

0

Oct

-10

Jan-

11

Apr-

11

Jul-1

1

Oct

-11

Jan-

12

Apr-

12

Jul-1

2

Oct

-12

Jan-

13

Apr-

13

Jul-1

3

Oct

-13

Jan-

14

Apr-

14

Jul-1

4

Oct

-14

Jan-

15

Apr-

15

Jul-1

5

Oct

-15

Jan-

16

Apr-

16

Jul-1

6

Oct

-16

(billion yen)

Monthly Quarter (Mean)

-70%

-60%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

Jan-

09

May

-09

Sep

-09

Jan-

10

May

-10

Sep

-10

Jan-

11

May

-11

Sep

-11

Jan-

12

May

-12

Sep

-12

Jan-

13

May

-13

Sep

-13

Jan-

14

May

-14

Sep

-14

Jan-

15

May

-15

Sep

-15

Jan-

16

May

-16

Sep

-16

(Diffusion index)

Large enterprises/Manufacturing

Large enterprises/Non-Manufacturing

Small enterprises/Manufacturing

Small enterprises/Non-Manufacturing

0

50

100

150

200

250

300

350

400

450(trillion yen)

Banknotes in Circulation

Coins in Circulation

Current Account Balances

0.4

0.6

0.8

1

1.2

1.4

1.6

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%

Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

（ratio）

Nov, 20161.41times

Nov, 20163.1％

Aug, 20090.42times

Jul, 20095.5％

Job opening-to-application ratio(right scale)

Unemployment rate(left scale)

0.5%

0.1%-1

0

1

2

3

4

Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16

(%)

CPI

CPI excluding food (excludingalcohilic beverages) and energy

Change from the previous year

Apr.4, 2013BOJ released QQE

4.4

-1.6 -1.8

0.3

5.14.3

2.4

-0.8

4.9

-7.1

-0.8

2.1

6.3

-0.5

0.8

-1.8

2.8 1.81.3

-14.0

-12.0

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ

2012 2013 2014 2015 2016

(％)

Private Demand Public Demand

Foreign Demand Real GDP

Annualized rate of Change from the previous quarter (Seasonally adjusted)

(CY)

2.3

3.2

4.3 3.8

5.4 4.4

5.5

4.1 4.3

1.8 3.3

0.9

2.1

1.1 1.6

-0.0

1.6 2.1

1.7

-1.0 -0.5

0.9

2.0 1.5

4.4 3.7

4.9

3.4

6.0

4.6

5.8

-8

-6

-4

-2

0

2

4

6

8

2009

Q1

2009

Q2

2009

Q3

2009

Q4

2010

Q1

2010

Q2

2010

Q3

2010

Q4

2011

Q1

2011

Q2

2011

Q3

2011

Q4

2012

Q1

2012

Q2

2012

Q3

2012

Q4

2013

Q1

2013

Q2

2013

Q3

2013

Q4

2014

Q1

2014

Q2

2014

Q3

2014

Q4

2015

Q1

2015

Q2

2015

Q3

2015

Q4

2016

Q1

2016

Q2

2016

Q3

Primary Income Trade BalanceServices Secondary IncomeCurrent Account

Real GDP Growth Rate

Employment Conditions

Prices

Changes in Current Account

Monetary Base Indices of Industrial Production

Total Value of Machinery Orders (Private Sector exc. Volatile orders)

TANKAN (Business Conditions)

Source: Cabinet Office "Quarterly Estimates of GDP"

Source: Ministry of Internal Affairs and Communications “CPI”

Source: Ministry of Health, Labour and Welfare “Employment Referrals for General Workers “, Ministry of Internal Affairs and Communications “Labour Force Survey”

Source: Ministry of Finance “Balance of Payments"

Source: Ministry of Economy, Trade and Industry "Indices of Industrial Production”

Source: Cabinet Office, Government Japan "Orders Received for Machinery"

(trillion yen)

6 ECONOMIC AND FINANCIAL TRENDS

Source: Bank of Japan "Monetary Base"

Source: Bank of Japan "Tankan"

－13－

70

80

90

100

110

120

130

140

150

160

Jan-

09Ap

r-09

Jul-0

9O

ct-0

9Ja

n-10

Apr-

10Ju

l-10

Oct

-10

Jan-

11Ap

r-11

Jul-1

1O

ct-1

1Ja

n-12

Apr-

12Ju

l-12

Oct

-12

Jan-

13Ap

r-13

Jul-1

3O

ct-1

3Ja

n-14

Apr-

14Ju

l-14

Oct

-14

Jan-

15Ap

r-15

Jul-1

5O

ct-1

5Ja

n-16

Apr-

16Ju

l-16

Oct

-16

(2010 average=100・Seasonally Adjusted Index)

Production Shipments

Inventory Inventory Ratio

English Publications on JGBs Frequency URL Debt Management

Message from the Financial Bureau As needed http://www.mof.go.jp/english/jgbs/debt_management/message.htm

About JGBs As needed http://www.mof.go.jp/english/jgbs/debt_management/guide.htm

About the Debt Management Policy As needed http://www.mof.go.jp/english/jgbs/debt_management/about.htm

JGB Issuance Plan As needed http://www.mof.go.jp/english/jgbs/debt_management/plan/index.htm

Auction Calendar

Auction Calendar Monthly http://www.mof.go.jp/english/jgbs/auction/calendar/index.htm

Historical Data of Auction Results Each Auction http://www.mof.go.jp/english/jgbs/auction/past_auction_results/index.html

Topics

Product Characteristics of the JGB As needed http://www.mof.go.jp/english/jgbs/topics/bond/index.html

Treasury Discount Bills (T-Bills) Annual http://www.mof.go.jp/english/jgbs/topics/t_bill/index.htm

Japanese Government Guaranteed Bonds Annual http://www.mof.go.jp/english/jgbs/topics/gov_guaranteed_bonds/index.htm

Interest Rate Swap Semiannual http://www.mof.go.jp/english/jgbs/topics/swap/index.htm

Taxation of Government Bonds As needed http://www.mof.go.jp/english/jgbs/topics/taxation/index.htm

For Individual Investors As needed http://www.mof.go.jp/english/jgbs/topics/individual/index.htm

Data

Central Government Debt Quarterly http://www.mof.go.jp/english/jgbs/reference/gbb/index.htm

Interest Rate Daily http://www.mof.go.jp/english/jgbs/reference/interest_rate/index.htm

STRIPS Monthly http://www.mof.go.jp/english/jgbs/reference/jgbstat/index.htm

Dialogue with the market

Advisory Councils on Government Debt Management Each Meeting http://www.mof.go.jp/english/about_mof/councils/gov_debt_management/index.html

Meeting of JGB Market Special Participants Each Meeting http://www.mof.go.jp/english/about_mof/councils/jgbsp/index.html

Meeting of JGB Investors Each Meeting http://www.mof.go.jp/english/about_mof/councils/jgb_investor/index.html

Publications

Debt Management Report Annual http://www.mof.go.jp/english/jgbs/publication/debt_management_report/index.htm

JGB Newsletter Monthly http://www.mof.go.jp/english/jgbs/publication/newsletter/index.htm

Debt Management Policy Division, Financial Bureau, Ministry of Finance 3-1-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8940 Japan

Phone: 81-3-3581-4111 Web: www.mof.go.jp

7 INFORMATION

To subscribe to our Newsletter mailing list, please email: JGB-IR@mof.go.jp

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