Japan Bond Investors Expect Extra Sales From February

Japan’s bond investors and dealers said there’s scope for the government to boost debt sales starting next month as Prime Minister Shinzo Abe’s fiscal stimulus measures are set to increase public borrowing that’s grown to more than twice the size of the economy.

The Ministry of Finance told the money managers during meetings today that extra spending for this fiscal year and the budget for the next year will require additional bond issuance to the market, an official told reporters in Tokyo. Most of the participants recommended the ministry selling more debt than planned from February, according to the official, who spoke on condition of anonymity.