Fixed Income Commentary
- Jan 16, 2024
Outlook for JGB supply/demand in 2024 based on debt issuance plans and BoJ purchases
Key points
- Calendar-base issuance in JGB issuance plan for FY24 points to reduced issuance across broad range of maturities
- However, market supply (MoF issuance less BoJ purchases) is currently expected to increase in long- and super-long-term sectors in 2024
- If BoJ continues dialing back its purchases of super-long JGBs, absence of buyers could fuel curve-steepening pressures