Japan to Resume Inflation Bond Sales in October With Guarantee
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Japan’s government plans to sell inflation-linked bonds in October, resuming issuance after a five-year hiatus and signaling Prime Minister Shinzo Abe’s resolve to spur growth in consumer prices and the economy.
The government will have two offerings worth 300 billion yen ($3.16 billion) each in 10-year securities known as linkers, with the second taking place in January, according to Ministry of Finance officials who spoke on condition of anonymity, elaborating on plans to reissue the securities announced earlier this year. The notes will have guaranteed minimum prices, a backstop that previously issued linkers didn’t have, leaving them vulnerable to price declines as deflation deepened.