Japan To Promote Government Bonds Abroad

The Finance Ministry will launch a division in July dedicated to promoting Japanese government bonds abroad amid an increase in the amount of outstanding bonds, ministry officials said Tuesday.

The new division will pitch the stability of Japanese government bonds to large-scale foreign investors such as pension funds and financial institutions in a bid to boost the ratio of bond holdings overseas.

As of late last year, the amount of outstanding short-term and long-term Japanese government bonds reached 985 trillion yen, of which only 8.3 percent were held by foreign investors, according to the Bank of Japan. The BOJ and domestic financial institutions were main investors in the government bonds.

Specifically, the new division will organize regular meetings with Tokyo offices of central banks abroad to learn about their interest in Japanese government bonds.

It will also issue monthly English news letters on government bonds to explain Japan’s bond management policy, macroeconomic trends and growth strategy.

“It’s indispensable to ensure bond holdings by diverse investors for the stable purchase of Japanese government bonds,” a ministry official said. “Disseminating correct information abroad will be important.”

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza