Tokyo Cuts Bond Sales Plan in Sign of Interest-Rate Jitters

The Tokyo Metropolitan Government is planning to cut bond sales this fiscal year, in another sign that Japan’s credit market is bracing for weaker investor demand for debt after the central bank raised interest rates.

Tokyo, one of Japan’s biggest issuers of municipal debt, is reducing its planned public bond sales in the year started April 1 to about ¥470 billion ($3.2 billion) from the previous plan of around ¥520 billion. It cited factors including recent interest-rate fluctuations, the burden of interest payments and funding needs.