UBS(US:UBS) Jin Shi Shu Ju·2025-06-05 10:00Group 1 - A senior investment manager suggests Japan should stop issuing bonds with maturities over 30 years to alleviate volatility in the government bond market [1] - The yield on 40-year Japanese government bonds surged to 3.675%, the highest since its introduction in 2007, prompting a call for the Ministry of Finance to cease long-term bond issuance [1] - Domestic demand for long-term bonds is declining due to an aging population, with life insurance companies and pension funds no longer needing to allocate to bonds with maturities exceeding 30 years [1] Group 2 - The recent surge in bond yields has led the Ministry of Finance to seek feedback from market participants regarding potential adjustments to its issuance strategy [2] - It is anticipated that the Bank of Japan should follow up on its January rate hike in the upcoming July monetary policy meeting, signaling a potential for semi-annual rate increases to stabilize market expectations [2] - The current bond portfolio of the Bank of Japan is heavily concentrated in 5-10 year bonds, and a shift towards longer maturities could enhance demand for ultra-long-term bonds [2] Group 3 - During the recent spike in bond yields, tactical purchases of ultra-long-term bonds were made, but significant accumulation will depend on clear signals from the Japanese government regarding market normalization [3]