MOF announced the issuance schedule and details for the 437th Liquidity Supply auction, an important bond market policy tool for providing liquidity to the Japanese government bond market.
Basic Auction Information
- Auction Date: September 8, 2025
- Issuance Date: September 9, 2025
- Planned Issuance Amount: Approximately ¥600 billion (face value)
Target Issues for Issuance This liquidity supply auction covers a broad range of maturities:
- 2-year JGBs: Issues 464-476 (13 issues)
- 5-year JGBs: Issues 149-178 (30 issues)
- 10-year JGBs: Issues 344-359 (16 issues)
- 20-year JGBs: Issues 90-120 (31 issues)
- 30-year JGBs: Issues 1-3 (3 issues)
Institutional Significance Liquidity supply auctions serve as crucial policy tools for ensuring liquidity and maintaining market function in the JGB market, featuring:
- Market liquidity supplementation: Resolving shortages in specific issue circulation
- Price distortion correction: Adjusting supply-demand imbalances
- Meeting investor needs: Responding to institutional and financial institution demand
- Monetary policy coordination: Supporting BOJ monetary policy operations
Market Impact and Importance The ¥600 billion liquidity supply represents substantial fund provision to the JGB market, enabling:
- Financial institutions: Diversified bond holdings and improved liquidity management
- Institutional investors: Securing bonds necessary for long-term investment
- Overall market: Enhanced trading activity and price discovery function
- Monetary policy: Appropriate influence on long-term interest rate formation
This auction serves as an important indicator of bond market demand trends and may influence future JGB issuance plans and monetary policy operations.