Japan flags big cut to long-end bond issuance before auction

Katsunobu Kato, Japan's finance minister, speaks during an interview in Tokyo, Japan, on Friday, June 13, 2025. Kato said discussions with market participants are a key factor for ensuring government bonds are bought and sold stably ahead of a closely watched ministry meeting with investors. Photographer: Shoko Takayasu/Bloomberg

Tokyo: Japan’s larger-than-expected cut to super-long bond issuance has potential to ease some upward pressure on yields just before an auction this week that risks reigniting turmoil in the debt market.

The move by the Finance Ministry may also prove fortuitous in light of the US attack on Iranian nuclear sites over the weekend.