What’s New: Supplementary Budget for FY2019 p. 2-3 Supplementary Budget for FY2019 was enacted on January 30, 2020 by Diet.

Monthly Topics: Overseas Residents’ Visits to Japan and Labour Force Survey p.4-5 According to the Japan National Tourism Organization (JNTO), the number of overseas

residents’ visits to Japan in 2019 rose 2.2 percent from the previous year to 31.9 million.

According to the “Labour Force Survey” of December 2019, the unemployment rate(seasonally adjusted) was 2.2%, which is the lowest level in recent years.

IR Office: IR activities in January and information on ebook publication p.6 IR tour to Europe Debt Management Report 2019 available with ebook format

StatisticsJGB Primary Market … p. 7 Liquidity Enhancement Auctions and JGB Buy-Back … p.8

JGB Secondary Market … p. 9 Investor Trends and JGB Outstanding … p. 11

Economic and Financial Trends … p. 15 Information … p. 16

-1-

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

SUMMARY

The Ministry of Finance www.mof.go.jp

Our fundamental goal of debt management policy is to achieve stable and smooth financing for our national accounts and to minimize medium-to-long term financing costs.

February 2020

Supplementary Budget for FY2019 Supplementary Budget for FY2019 was enacted on January 30, 2020 by Diet.

The main topic of the supplementary budget for FY2019 was to include the central government expenditures to implement “Comprehensive Economic Measures to Create a Future with Security and Growth”, which is described as below.

-2-

What’s New

Overview of the Supplementary Budget for FY2019

For more details, please refer to the following link. https://www.mof.go.jp/english/budget/budget/fy2019/02.pdf

-3-

Overseas Residents’ Visits to Japan in 2019

The Japanese government has taken measures to increase the number of foreign tourists to

Japan and tourism development is one of the growth strategies under the Abenomics Policy. According to the Japan National Tourism Organization (JNTO), the number of overseas

residents’ visits to Japan in 2019 rose 2.2 percent from the previous year to 31.9 million.

Although visitors from South Korea have reduced by half since August last year, visitors from

the other three countries in East Asia area has outperformed the figure for 2018, supported by an increase in the number of flights and so on. Visitors from Southeast Asian countries also increased especially in the latter half of 2019, along with the increase in the number of flights, etc. Cherry blossoms and the Rugby World Cup 2019 held in Japan attracted tourists from Europe, the U.S.A. and Australia, pushing the number of visitors higher than in the previous year through 2019.

5.2 6.1 6.7 7.3 8.3 8.4 6.8

8.6 6.2

8.4 10.4

13.4

19.7

24.0

28.7 31.2 31.9

0

5

10

15

20

25

30

35

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

(million)

Source: Japan National Tourism Organization (JNTO)

-4-

Overseas Residents' Visits to Japan by year

Comparison of Visitor Arrivals between 2018 and 2019

Source: Japan National Tourism Organization (JNTO)

Monthly Topics

Labour Force Survey -December 2019-

According to the “Labour Force Survey” of December 2019, the unemployment rate (seasonally adjusted) was 2.2%, which is the lowest level in recent years.

The number of employed persons in December 2019 was 67.37 million, an increase of 0.81 million or 1.2% from the previous year. The number of unemployed persons in December 2019 was 1.45 million, a decrease of 0.14 million or 8.8% from the previous year.

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

56.0

58.0

60.0

62.0

64.0

66.0

68.0

70.0

Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

December 201967.37 million

Employed Persons(LHS)

Unemployed persons(RHS)

December 20191.45 million

(million) (million)

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%

Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

July 20095.5％

December 20192.2％

Source: Ministry of Internal Affairs and Communications “Labour Force Survey” https://www.stat.go.jp/english/data/roudou/results/month/

Unemployment Rate Number of employed and unemployed persons

-5-

From the end of January to the beginning ofFebruary, Mr. Kubota, Deputy Director-General ofthe Financial Bureau, Mr. Naruse, Deputy Director,and Mr. Okamoto, Deputy Director, visitedLondon, Stockholm and Frankfurt to havemeetings with foreign investors. During themeetings, we mainly described the currentconditions of the Japanese economy and theJGB issuance plan for FY2020. Then, weexchanged views on relevant Japanese policiesand recent market conditions. In addition, we also discussed the Japanese and Europeaneconomic situations. The discussions stimulated us greatly. We are most grateful for theopportunity and hope to meet again.

We are pleased to inform you that our annual report, Debt ManagementReport 2019, is now available in ebook format. We hope that you find iteasier to read on your smartphone or tablet without having to carry aphysical booklet or printed copy.

You may download the English version report from the following URLs: Kindle : Apple Books : kobo :

IR 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

-6-

https://www.amzn.com/dp/B083XJ277G http://books.apple.com/jp/book/id1495294136 https://books.rakuten.co.jp/rk/a9a5be755c913eed99415c443bfe933f/?l-id=search-c-item-text-MOFAMOFA01

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- competitiveAuction Ⅰ(billion yen)

Amounts of Bids Accepted at the

Non-price- competitiveAuction Ⅱ(billion yen)

11/6/2019 10-year 356 9/20/2029 0.1% 6,175.8 1,705.5 ▲0.094% ▲0.099% 0.265 393.9 0.0 11/8/2019 10-year Inflation-Indexed Bonds 24 3/10/2029 0.1% 1,368.7 399.6 ▲0.204% - - - 10.7 11/12/2019 30-year 64 9/20/2049 0.4% 2,083.1 568.9 0.464% 0.458% - 130.6 0.0 11/14/2019 5-year 141 9/20/2024 0.1% 6,273.3 1,556.5 ▲0.188% ▲0.190% - 343.0 283.9 11/20/2019 20-year 170 9/20/2039 0.3% 3,078.2 731.6 0.268% 0.266% - 167.3 133.9 11/26/2019 40-year 12 3/20/2059 0.5% 1,399.4 399.6 0.460% - - - 55.4 11/28/2019 2-year 407 12/1/2021 0.1% 6,875.9 1,664.9 ▲0.183% ▲0.189% - 334.6 0.0 12/3/2019 10-year 356 9/20/2029 0.1% 5,679.7 1,730.1 ▲0.026% ▲0.042% 0.332 369.3 0.0 12/5/2019 30-year 64 9/20/2049 0.4% 2,108.7 571.6 0.432% 0.430% - 128.0 102.9 12/10/2019 5-year 141 9/20/2024 0.1% 6,255.8 1,555.4 ▲0.066% ▲0.083% - 344.1 283.9 12/17/2019 20-year 170 9/20/2039 0.3% 3,026.9 737.4 0.289% 0.286% - 162.0 128.1 12/24/2019 2-year 408 1/1/2022 0.1% 7,762.9 1,656.0 ▲0.095% ▲0.098% - 343.5 257.7 1/7/2020 10-year 357 12/20/2029 0.1% 6,343.6 1,712.6 ▲0.003% ▲0.005% 0.265 386.1 72.4 1/9/2020 30-year 65 12/20/2049 0.4% 2,087.2 571.0 0.433% 0.430% - 128.0 0.0 1/15/2020 5-year 142 12/20/2024 0.1% 6,991.9 1,560.3 ▲0.087% ▲0.087% - 338.8 189.2 1/17/2020 20-year 171 12/20/2039 0.3% 2,818.5 736.3 0.305% 0.300% - 162.8 0.0 1/28/2020 40-year 12 3/20/2059 0.5% 1,143.2 399.2 0.400% - - - 5.0 1/30/2020 2-year 409 2/1/2022 0.1% 7,326.5 1,632.1 ▲0.147% ▲0.147% - 367.6 198.9

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)

11/1/2019 3-month 867 2/10/2020 12,980.10 3,510.37 ▲0.1579% ▲0.1700% 789.60 11/7/2019 6-month 868 5/11/2020 9,617.00 1,877.57 ▲0.1462% ▲0.1563% 422.40 11/8/2019 3-month 869 2/17/2020 16,544.92 3,485.58 ▲0.1451% ▲0.1492% 784.40 11/15/2019 3-month 870 2/25/2020 13,077.71 3,526.08 ▲0.1989% ▲0.2137% 793.90 11/19/2019 1-year 871 11/20/2020 5,797.20 1,551.67 ▲0.1911% ▲0.2000% 348.30 11/22/2019 3-month 872 3/2/2020 9,510.11 3,517.17 ▲0.2103% ▲0.2263% 792.80 11/29/2019 3-month 873 3/9/2020 11,653.91 3,493.26 ▲0.1507% ▲0.1783% 786.70 12/6/2019 3-month 874 3/16/2020 10,043.10 3,527.09 ▲0.0986% ▲0.1187% 792.90 12/9/2019 6-month 875 6/10/2020 8,749.80 1,983.45 ▲0.0996% ▲0.1036% 316.50 12/13/2019 3-month 876 3/23/2020 14,670.50 3,527.54 ▲0.1154% ▲0.1284% 792.40 12/18/2019 1-year 877 12/21/2020 6,578.30 1,617.88 ▲0.1053% ▲0.1172% 282.10 12/20/2019 3-month 878 3/30/2020 12,929.20 3,557.38 ▲0.0893% ▲0.1061% 782.60 1/7/2020 3-month 879 4/6/2020 12,314.30 3,552.47 ▲0.0984% ▲0.1086% 787.50 1/9/2020 6-month 880 7/10/2020 9,028.50 1,883.57 ▲0.1162% ▲0.1182% 416.40 1/10/2020 3-month 881 4/13/2020 11,710.90 3,551.40 ▲0.1074% ▲0.1175% 788.55 1/16/2020 1-year 882 1/20/2021 6,124.70 1,551.35 ▲0.1215% ▲0.1254% 348.60 1/17/2020 3-month 883 4/20/2020 12,755.50 3,552.41 ▲0.1122% ▲0.1170% 787.50 1/24/2020 3-month 884 4/27/2020 12,048.70 3,541.44 ▲0.1162% ▲0.1222% 798.50 1/31/2020 3-month 885 5/7/2020 12,352.70 3,662.84 ▲0.1203% ▲0.1257% 777.10

Auction Calendar for Feb. 2020 – Apr. 2020 Auction Date Issue Auction Date Issue Auction Date Issue Auction Date Issue

2/4(Tue) 10-year 2/28(Fri) T-Bills (3-month) 3/24(Tue) Liquidity Enhancement Auction (remaining maturities of 1-5 years) 4/16(Thu) Liquidity Enhancement Auction

(remaining maturities of 5-15.5 years

2/6(Thu) T-Bills (6-month) 2/28(Fri) 2-year 3/26(Thu) 40-year 4/17(Fri) T-Bills (3-month) 2/6(Thu) 30-year 3/3(Tue) 10-year 3/27(Fri) T-Bills (3-month) 4/21(Tue) 20-year

2/7(Fri) T-Bills (3-month) 3/5(Thu) 30-year 3/31(The) 2-year 4/23(Thu) 2-year

2/12(Wed) 10-year Inflation-Indexed Bonds 3/6(Fri) T-Bills (3-month) 4/2(Thu) 10-year 4/24(Fri) T-Bills (3-month)

2/14(Fri) T-Bills (3-month) 3/9(Mon) T-Bills (6-month) 4/3(Fri) T-Bills (3-month)

2/14(Fri) Liquidity Enhancement Auction (remaining maturities of 5-15.5 years) 3/10(Tue) 5-year 4/7(Tue) 30-year

2/18(Tue) 5-year 3/12(Thu) 20-year 4/9(Thu) T-Bills (6-month)

2/19(Wed) T-Bills (1-year) 3/13(Fri) T-Bills (3-month) 4/9(Thu) 5-year 2/20(Thu) 20-year 3/16(Mon) Liquidity Enhancement Auction

(remaining maturities of 5-15.5 years) 4/10(Fri) T-Bills (3-month)

2/21(Fri) T-Bills (3-month) 3/17(Tue) T-Bills (1-year) 4/14(Tue) Liquidity Enhancement Auction (remaining maturities of 15.5-39 years)

2/26(Wed) Liquidity Enhancement Auction (remaining maturities of 15.5-39 years) 3/18(Wed) T-Bills (3-month) 4/16(Thu) T-Bills (1-year)

Top 10 PDs for Successful Bids in Auctions (Calculated by Duration) (Jul.～Dec. 2019) Top 5 PDs for Successful Bids of Inflation-Indexed Bond (FY2018) 1 Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. 6 SMBC Nikko Securities Inc. 1 Goldman Sachs Japan Co., Ltd. 2 Daiwa Securities Co. Ltd. 7 Morgan Stanley MUFG Securities Co., Ltd. 2 Nomura Securities Co., Ltd. 3 Mizuho Securities Co., Ltd. 8 Merrill Lynch Japan Securities Co., Ltd. 3 JPMorgan Securities Japan Co., Ltd. 4 Nomura Securities Co., Ltd. 9 Deutsche Securities lnc. 4 Mizuho Securities Co., Ltd. 5 JPMorgan Securities Japan Co., Ltd. 10 Citigroup Global Markets Japan Inc. 5 Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.

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.

(Until 31 January 2020)

(Until 31 January 2020)

-7-

Results of Liquidity Enhancement Auctions

Auction Date Amounts of Competitive

Bids (billion yen)

Amounts of Bids

Accepted (billion yen)

Average Accepted Spread

Highest Accepted Spread

Issues Re-opened

11/18/2019

1,534.4

398.0 ▲0.009% ▲0.007%

2-year(394, 398) 5-year(129, 130, 131, 132, 133, 134, 135, 136) 10-year(316, 317, 318, 321, 322, 323, 324, 325, 328, 329, 332, 333, 334, 335) 20-year(48, 50, 53, 54, 55, 56, 61, 64, 65, 70, 71, 72)

11/22/2019

1,422.0

599.7 0.030% 0.035%

10-year(336, 337, 338, 339, 340, 342, 345, 347, 349) 20-year(76, 77, 81, 82, 83, 84, 88, 93, 94, 99, 100, 106, 107, 109, 110, 111, 112, 113, 115, 116, 117, 118, 121, 122, 123, 124, 125, 126, 127, 128, 129, 132, 135, 136, 137, 140, 144, 146, 147, 148, 149, 151, 152) 30-year(2, 4, 5, 7, 8, 9, 10, 13, 17, 18)

12/12/2019

1,280.4

499.1 ▲0.005% 0.000% 20-year(154, 155, 156, 158, 160, 163, 164, 165, 167, 169) 30-year(20, 23, 25, 26, 27, 28, 29, 30, 31, 32, 38, 39, 41, 43, 46, 48, 59) 40-year(7, 9, 10, 11)

12/20/2019

1,519.7

599.0 0.013% 0.018%

10-year(336, 338, 339, 340, 341, 343, 354, 355) 20-year(88, 102, 113, 114, 115, 117, 118, 122, 124, 125, 126, 127, 128, 129, 133, 144, 146, 147, 149, 150, 151, 152) 30-year(1, 12, 13)

1/22/2020

1,774.2

597.2 0.000% 0.002%

10-year(338, 339, 343, 345, 347, 356) 20-year(80, 87, 92, 93, 94, 95, 96, 97, 98, 99, 100, 102, 103, 105, 107, 108, 112, 113, 114, 116, 118,

119, 120, 121, 122, 125, 126, 127, 131, 133, 137, 138, 139, 149, 150, 152) 30-year(13)

1/24/2020

1,621.9

398.9 ▲0.001% 0.001%

2-year(398, 405) 5-year(130, 131, 133, 134, 135, 136, 137, 138) 10-year(318, 320, 323, 324, 325, 326, 327, 328, 329, 330, 331, 332, 333) 20-year(54, 55, 56, 58, 59, 60, 61, 63, 64, 66, 70)

Target Zones of Liquidity Enhancement Auctions for the Fourth Quarter of FY 2019

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

10/16/2019 99.4 20.3 ▲0.134 ▲0.11 18, 19, 20, 21, 22, 24 11/15/2019 98.0 20.1 0.027 0.08 17, 19, 20, 21, 22, 24 12/18/2019 85.9 20.1 ▲0.083 ▲0.08 17, 22, 24 1/16/2020 132.9 20.1 ▲0.012 0.01 17, 19, 23, 24

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

Liquidity Enhancement Auctions and JGB Buy-Back

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

Note1： 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 December 2019. Note2： All issues in the graph above will be eligible afterward.

Buy-Back Results

(Until 31 January 2020)

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

(Until 31 January 2020)

0500

1,0001,5002,0002,5003,0003,5004,0004,5005,0005,5006,0006,5007,000

JN39

6

JN39

7

JN39

8

JS12

7

313

314

JL49

JL50

JN39

9

JN40

0

JN40

1

JS12

8

315

316

JL51

JN40

2

JN40

3

JN40

4

JS12

9

317

318

JL52

JN40

5

JN40

6

JN40

7

JS13

0

319

320

JL53

JL54

JS13

1

321

322

JL55

JS13

2

323

324

JL56

JL57

JS13

3

325

JL58

JS13

4

326

327

JL59

JL60

JS13

5

328

JL61

JS13

6

329

JL62

JL63

JS13

7

330

331

JL64

JS13

8

332

JL65

JL66

JS13

9

333

JL67

JL68

JL69

JS14

0

334

JL70

JL71

JS14

1

335

JL72 336

337

JL73

JL74

Amount issued by Liquidity Enhancement Auction Outstanding amount in the market (excluding amount issued by Liquidity Enhancement Auction)

1 2 5(Remaining maturities)

(billion yen)

0500

1,0001,5002,0002,5003,0003,5004,0004,5005,000

338

JL75

JL76

JL77 33

9JL

78JL

79JL

80 340

JL81

JL82 34

1JL

83JL

84 342

JL85

JL86

JL87 34

3JL

88JL

89 344

JL90

JL91 34

5JL

92 346

JL93

JL94 34

7JL

95JL

96 348

JL97

JL98 34

9JL

99 350

JL10

0JL

101

351

JL10

2JL

103

JL10

435

2JL

105

JL10

635

3JL

107

JL10

835

4JL

109

JL11

035

5JL

111

JL11

235

6JL

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

6JX

7JL

137

JL13

8JL

139

JL14

0JX

8JL

141

JL14

2JX

9JL

143

JL14

4JX

10JL

145

JX11

JL14

6JX

12JL

147

JX13

JL14

8JX

14JL

149

JX15

JL15

0JX

16JL

151

JX17

JL15

2JX

18JL

153

JX19

Amount issued by Liquidity Enhancement Auction Outstanding amount in the market (excluding amount issued by Liquidity Enhancement Auction)

5 10 15.5(Remaining maturities)

(billion yen)

0500

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

JL15

4

JX20

JL15

5

JX21

JL15

6

JX22

JL15

7

JX23

JL15

8

JX24

JL15

9

JX25

JL16

0

JX26

JL16

1

JL16

2

JX27

JL16

3

JL16

4

JX28

JL16

5

JL16

6

JX29

JL16

7

JL16

8

JX30

JL16

9

JL17

0

JX31

JX32

JX33

JX34

JX35

JX36

JX37

JX38

JX39

JX40

JX41

JX42

JX43

JX44

JX45

JX46

JX47

JX48

JX49

JX50

JX51

JX52

JX53

JX54

JX55

JX56

JX57

JX58

JU1

JX59

JX60

JX61

JX62

JU2

JX63

JX64

JU3

JU4

JU5

JU6

JU7

JU8

JU9

JU10

JU11

Amount issued by Liquidity Enhancement Auction Outstanding amount in the market (excluding amount issued by Liquidity Enhancement Auction)

(Remaining maturities)

(billion yen)

15.5 20 39

-8-

-1%

0%

1%

2%

3%

4%

5%

Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

BEI (Japan : 10 year)

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

BEI (U.K. : 10 year)

Note: 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.

JGB Yield Curves

Source: Japan Bond Trading Co.,Ltd.

Yields of JGB

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

Source: Bloomberg

-9-

Yield and Volatility (10Yr)

Break-Even Inflation Rates

Source: Bloomberg, Calculation by the Ministry of Finance

(Until 31 December 2019)

(Until 31 December 2019)

(Until 30 December 2019)

(Until 31 December 2019)

JGB Secondary Market

0

500

1,000

1,500

2,000

2,500

Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

Bond-Lending

Bond-Gensaki

-0.1%

0.0%

0.1%

0.2%

0.3%

0.4%

0.5%

Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

Call Rate (Uncollateralized Overnight)

TIBOR 3-months (Euro-Yen)

Basic Loan Rate

0100200300400500600700800900

1,0001,1001,2001,3001,4001,5001,6001,7001,8001,9002,000

Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

Treasury Discount BillsMedium Term BondsLong Term Bonds

0

20

40

60

80

100

120

140

Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

Short-Term Interest Rates

Source: Bank of Japan, Tanshi Association, Bloomberg

JGB Over-the-Counter Trading Volume (TOKYO)

Trading Volume of 10-Year JGB Futures

Repurchase Transactions

-10-

Source: Japan Securities Dealers Association

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

(trillion yen)

(trillion yen)

(trillion yen)

(Until 31 December 2019)

Source: Japan Securities Dealers Association

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

7.0

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

City Banks

Net Purchase

Net Sale

2015 2016 2017 2018 2019

-1.0

-0.8

-0.6

-0.4

-0.2

0.0

0.2

0.4

0.6

0.8

1.0

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

Regional banks

Net Purchase

Net Sale

2015 2016 2017 20192018

-0.5

0.0

0.5

1.0

Jan Apr Jul Oct 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

2015 2016 2017 2018 2019

-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

26.0

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

Foreigners

Net Purchase

Net Sale

2015 2016 2017 20192018

Apr 2013(Actual)

Dec 2019(Actual)

Monetary Base 155 518

JGBs 98 472

CP 1.4 2.2

Corporate Bonds 2.9 3.2

ETFs 1.7 28.3

J-REITs 0.13 0.55

Total Assets 175 573 0

50

100

150

200

250

300

350

400

450

500

550

600

Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Apr-19

Total Assets

Monetary Base

JGBs

QQE2QQE（trillion yen）

0

10

20

30

40

50

Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

200210220230240250260270

0

50

100

150

200

Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

-11-

Trends in Bank Assets by Types

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

Investor Trends and JGB Outstanding

0%

5%

10%

15%

20%

25%

30%

35%

40%

Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

City Banks Trust Banks Insurance Companies Foreigners

-10

-8

-6

-4

-2

0

2

4

6

8

10

Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

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-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

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

Net Purchase

Net

Sales

-6

-4

-2

0

2

4

6

Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

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

Net Purchase

Net

Sales

12.7%

37.9%

61.8%

0%

10%

20%

30%

40%

50%

60%

70%

Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19

①Market Share of Foreign Investors (JGB Futures Market)

②Market Share of Foreign Investors (JGB Market)

③JGB Holdings by Foreign Investors

40

60

80

100

120

140

160

1

2

3

4

5

6

7

8

9

10

11

12

13

Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19

Amount of JGBHoldings (right)

Proportion of JGB Holdings (left)

(trillion yen)(%)

12.7

144.4

-12-

JGBs Holdings by Foreign Investors

Banks(Banking Accounts) Life Insurance Companies

Transactions of Domestic Securities by Non-Residents

Note.1: Quarterly basis. Note.2: “JGB” includes T-Bills. Source: Bank of Japan

Transactions of Foreign Securities by Residents (by Investor types)

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)

Source: Japan Securities Dealers Association

(trillion yen)

Outstanding of Repurchase Agreements (by Investor types)

Source: Ministry of Finance Source: Ministry of Finance

Source: Ministry of Finance

General Government

(ex Public Pensions)

2.9

0.3%Fiscal Loan Fund

0.0

0.0%

BOJ

500.2

43.9%

Banks,etc.

171.8

15.1%

Life and Non-life

Insurance,etc.

223.3

19.6%

Public Pensions

43.2

3.8%

Pension Funds

32.1

2.8%

Foreigners

144.4

12.7%

Households

13.4

1.2%

Others

9.4

0.8%

BOJ

10.3

10.9%

Banks,etc.

17.4

18.4%

Life and Non-life

Insurance,etc.

2.0

2.1%

Foreigners

65.1

68.7%

Fiscal Loan Fund0.00.0%

General Government(ex Public Pensions)

0.00.0%

General Government

(ex Public Pensions)

2.9

0.3%

BOJ

490.0

46.8%

Banks,etc.

154.4

14.8%

Life and Non-life

Insurance,etc.

221.3

21.2%

Public Pensions

43.2

4.1%

Pension Funds

32.1

3.1%

Foreigners

79.4

7.6%

Households

13.4

1.3%

Others

9.4

0.9%

JGB and T-Bill Holders

Breakdown by JGB and T-Bill Holders (The end of Sep. 2019 QE)

Source: Bank of Japan “Flow of Funds Accounts (Preliminary Figures)” Note1: “JGB” includes “FILP Bonds.” Note2: “Banks, etc.” includes “Japan Post Bank”, “Securities investment trust” and “Securities companies.” Note3: “Life and Non-life insurance, etc.” includes “Japan Post Insurance.”

(trillion yen)

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

T-Bill Holders

Total 94.8 trillion yen

JGB Holders

Total 1,046.0 trillion yen

Total 1,140.7 trillion yen

-13-

0

50

100

150

200

250

300

350

400

450

500

550

600

650

700

750

800

850

900

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018

17.8% 18.3% 18.2% 17.9% 17.3% 16.4% 15.1% 14.3% 13.4% 13.1%

13.0% 12.5% 11.9% 12.4% 12.0% 11.1% 10.6% 10.5% 10.5% 10.8%

8.5%7.9% 8.6% 8.1% 7.8% 7.8% 7.9% 7.7% 8.2% 7.0%

8.4%9.0%

8.6% 8.1% 8.1% 8.2% 7.8% 8.2% 7.1% 7.4%8.8%8.4%

7.8%7.8% 7.8% 7.4% 7.8% 6.8% 6.8% 6.7%

5.2%4.7%

4.9%4.4% 4.2% 5.0% 4.2% 4.4% 5.0% 4.7%

4.9%5.2%

4.6%4.5% 5.0% 4.3% 4.4% 4.8% 4.7% 4.9%

5.5%4.8%

4.8%5.3%

4.5% 4.5% 5.0% 4.8% 5.0% 4.6%

5.2%5.1%

5.6%4.7%

4.8% 5.2% 4.9% 5.1% 4.7% 4.9%

4.7%5.2%

4.4%4.3%

4.6% 4.2% 4.5% 4.1% 4.0% 4.2%

14.4%14.4%

14.9%15.6%

16.5%17.7%

18.4% 19.2% 19.6% 20.2%

3.6%

4.6%

5.8%

6.7%

7.5%8.3%

9.4%10.1%

11.1%11.6%

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

（Unit: trillion yen）

（at the end of FY）

594.0

636.3669.9

705.0

743.9774.1

805.4830.6

853.2

*years to maturity

Average

YTM* 6Y5M 6Y8M 7Y0M 7Y3M 7Y7M 8Y0M 8Y5M 8Y7M 8Y10M 9Y0M

Average YTM*

(excluding saving

bonds)6Y6M 6Y10M 7Y1M 7Y5M 7Y8M 8Y0M 8Y5M 8Y8M 8Y11M 9Y1M

874.0

Types The amount of redemption at maturity Scheduled redemption date

2-Year Bonds 2,395.3 February 15

Treasury Bills 1,800.0 February 20

Total 4,195.3

0100200300400500600700800900

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

17 18 19 20 21 22 23 24

(billion yen)

(issue number)

Outstanding amount (excl.BOJ holding)BOJ holding

545.9594.0

636.3669.9

705.0743.9

774.1805.4

830.6 853.2880.2 896.7

127.1

142.4 143.1

163.1 163.3 153.6

158.0 150.5 148.3

140.0 140.2 136.7

100

200

300

400

500

600

700

800

900

0

30

60

90

120

150

180

08 09 10 11 12 13 14 15 16 17 18 19

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

Source: Ministry of Finance

General Bonds Issuance Amount and Outstanding

Note 1: Issuance Amount: revenue basis, FY2008-2017: Actual, FY2018: Supplementary budget, FY2019: Initial budget Note 2: Outstanding: nominal basis, FY2008-2017: Actual, FY2018 Supplementary budget, FY2019: Initial budget Source: Ministry of Finance

Market-held Balance of the Inflation-Indexed Bonds (as of the end of December, 2019)

(trillion yen)

Scheduled redemption of JGB at maturity in February, 2020

Note.1: The figures are based on the outstanding JGBs at the end of December, 2019. 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)

Source: Ministry of Finance, Bank of Japan

Time-to-Maturity Structure of Outstanding JGB（Sep. 2019）

-14-

57.58

105.59

71.9165.39

64.94

45.5843.44

40.6242.56

43.20

22.3516.63 16.37

19.46 19.02 20.8419.74

18.1318.12 17.92

8.47 6.71 7.196.34 8.43 9.54 10.90 9.31

11.3710.03

3.66 1.96 1.96 1.99 2.17 2.28 2.50 2.75 1.74 1.260

102030405060708090

100110120130

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 56 57 58

(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： 9 years and 1 month

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

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 Jan-17 Jan-18 Jan-19

（ratio）

Dec, 20191.57

Dec, 20192.2％

Job openings-to-applicants ratio(RHS)

Unemployment rate(LHS)

Aug, 20090.42

Jul, 20095.5％

85

95

105

115

125

135

145

Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

(2015 average=100・Seasonally Adjusted Index)

Production Shipments

Inventory Inventory Ratio

0.5%

0.8%

-1

0

1

2

3

4(%)

CPI

CPI excluding food (excludingalcohilic beverages) and energy

Change from the previous year

Apr.4, 2013BOJ released QQE

600

650

700

750

800

850

900

950

1,000

Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

(billion yen)

Monthly Quarter (Mean)

0

100

200

300

400

500

600

Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

(trillion yen)

Banknotes in Circulation

Coins in Circulation

Current Account Balances

1.6 2.1

1.7

-1.0 -0.5

0.9

2.0

1.6

4.3

3.9

5.0

3.3

6.1 4.9

6.1

4.3

6.4

4.8

7.2

4.3

5.9 5.0

5.7

2.6

6.0

4.6

5.8

-8

-6

-4

-2

0

2

4

6

8

10

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

2016

Q4

2017

Q1

2017

Q2

2017

Q3

2017

Q4

2018

Q1

2018

Q2

2018

Q3

2018

Q4

2019

Q1

2019

Q2

2019

Q3

Primary Income Trade Balance

Services Secondary Income

Current Account

-30%

-20%

-10%

0%

10%

20%

30%(Diffusion index)

Large enterprises/Manufacturing

Large enterprises/Non-Manufacturing

Small enterprises/Manufacturing

Small enterprises/Non-Manufacturing

4.9

-2.8-1.5

1.0

5.0

3.2 3.4

-0.2

4.0

-7.4

0.4

2.0

5.5

0.5

-0.2-1.6

1.90.7

1.1 0.9

4.6

1.6 2.7

1.2

-1.9

2.1

-2.4

1.0

2.6 2.01.8

-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 Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ

2012 2013 2014 2015 2016 2017 2018 2019

(％)

Private Demand Public Demand

Foreign Demand Real GDP

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

(CY)

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 Source: Ministry of Internal Affairs and Communications

Source: Ministry of Health, Labour and Welfare Ministry of Internal Affairs and Communications Source: Ministry of Finance

Source: Ministry of Economy, Trade and Industry

Source: Cabinet Office

(trillion yen)

Economic and Financial Trends

Source: Bank of Japan

Source: Bank of Japan

-15-

English Publications on JGBs Frequency URL Debt Management

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

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

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

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

Auction Calendar

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

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

Topics

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

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

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

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

Taxation of Government Bonds As needed https://www.mof.go.jp/english/jgbs/topics/taxation2016/index.html

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

Data

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

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

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

Dialogue with the market

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

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

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

Publications

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

JGB Newsletter Monthly https://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: https://www.mof.go.jp/

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

-16-

Information