Japan Said to Plan First Inflation-Linked Bond Sale Since 2008

Japan plans to sell its first inflation-lined bonds in almost five years after it stopped offering the securities amid a lack of demand.

The Ministry of Finance will seek to sell several hundred billion yen of inflation-linked debt in the fiscal year starting in April, according to two government officials speaking on condition of anonymity due to the government’s policy.

A majority of institutional investors said they aren’t considering buying the so-called linkers, ministry officials told reporters in Tokyo on Jan. 22 after a meeting with bond dealers. Some primary dealers, those obliged to bid at the government auctions, suggested the resumption of sales should be delayed until the second half of the fiscal year.

Barclays Capital analyst Chotaro Morita said in note today that he anticipates that the ministry will sell the debt as early as July-to-September this year.

To contact the reporter on this story: Kyoko Shimodoi in Tokyo at kshimodoi@bloomberg.net

To contact the editor responsible for this story: Paul Panckhurst at ppanckhurst@bloomberg.net

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