Japan’s MOF Is Said Looking to Reclassify Liquidity Supply Zones

Japan’s Finance Ministry is preparing to reclassify its liquidity supply auctions so it can improve conditions in the long-term zone of the market, according to people familiar with the plan.

The ministry sent questionnaires to market participants last week to sound them out on a possible review of maturity zones, according to the people. Currently, auctions are split among three categories, with ranges of 1-5 years, 5-15.5 years and 15.5-39 years. The proposal is to widen the third category to span 11-39 years while narrowing the second category to 5-11 years, according to one of the people.