Core Viewpoint - The Japanese Ministry of Finance plans to significantly reduce the issuance of super-long-term government bonds due to unprecedented fluctuations in yields, exceeding earlier media reports [1][2] Group 1: Issuance Reduction Details - The total issuance of 20-year, 30-year, and 40-year bonds will be reduced by 3.2 trillion yen (approximately 22 billion USD) for the fiscal year ending March 2026, surpassing the previously expected reduction of 2.3 trillion yen [1][2] - Specifically, the issuance of 20-year bonds will decrease by 1.8 trillion yen to 10.2 trillion yen, which is double the amount reported earlier [2] - The issuance of 30-year bonds will be reduced by 900 billion yen to 8.7 trillion yen, and the issuance of 40-year bonds will decrease by 500 billion yen to 2.5 trillion yen [2] Group 2: Short-term Debt Adjustments - To compensate for the reduction in long-term debt issuance, the Ministry of Finance is considering increasing the issuance of short-term debt, particularly six-month bonds [1] - The overall issuance of Japanese government bonds for the fiscal year will see a slight decrease of 500 billion yen, totaling 171.8 trillion yen [1] - The issuance of 2-year bonds will increase by 600 billion yen to 31.8 trillion yen, and the issuance of 1-year bonds will rise by 300 billion yen to 38.7 trillion yen [2] - The issuance of six-month bonds will see a significant increase of 1.8 trillion yen to 4.2 trillion yen [2] Group 3: Market Context - The adjustments come amid severe volatility in the Japanese bond market, with rising yields causing global market reactions [1] - Recent concerns regarding Japan's fiscal situation have intensified selling pressure, particularly after weak auction demand led to a spike in yields for 30-year and 40-year bonds [1]