Issuance Schedules and Calendars
MOF auction calendars, issuance patterns across maturities, and market preparation
The Rhythm of the Market: MOF Issuance Plans
The JGB primary market runs on a highly predictable, transparent, and regular schedule set by the Ministry of Finance (MOF). This transparency is crucial for market stability, allowing investors to plan their cash needs and investment strategies months in advance.
The issuance process is governed by two key documents available on the MOF's official website:
- Annual Issuance Plan: MOF JGB Issuance Calendar (English)
- Monthly Auction Calendar: MOF Monthly Auction Schedule
- Past Auction Results: Historical Auction Data
- Japanese Language (More Complete): 国債入札カレンダー
The issuance process is governed by two key documents: the Annual Plan and the Monthly Calendar.
1. The Annual JGB Issuance Plan
Published every December for the upcoming fiscal year (which starts April 1st), this is the government's high-level borrowing strategy. It outlines:
- Total Issuance Amount: The total amount the MOF plans to borrow, broken down by new financing (deficit) and refinancing (rolling over old debt).
- Issuance by Maturity: The planned total (or range) to be issued for each tenor (e.g., ¥32.4 trillion in 10-year bonds).
- Issuance Frequency: How often each bond will be auctioned (e.g., "monthly").
- Strategic Goals: Any strategic shifts, such as increasing 40-year issuance to lengthen the average maturity of government debt.
This document is the market's bible for the year. It allows large investors like pension funds to forecast the supply of bonds they need to buy.
2. The Monthly Auction Calendar
On the last business day of each month, the MOF releases the detailed auction calendar for the *following* month. This document provides the specific, hard dates that traders program into their systems.
It includes:
- Auction Dates: The exact day (e.g., Oct 7, 2025) for each auction.
- Issuance Amount: The precise amount to be sold (e.g., ¥2.7 trillion).
- Issue Date & Maturity Date: The T+1 settlement date and the exact maturity date of the new bond.
Typical JGB Auction Frequency
While the exact schedule changes, the MOF follows a very regular "rhythm" of issuance. This ensures a consistent supply across the entire yield curve.
| JGB Tenor (Maturity) | Typical Auction Frequency | Timing |
|---|---|---|
| T-Bills (3-mo, 6-mo) | Weekly | Typically held every Monday and Tuesday. |
| 2-year, 5-year, 10-year | Monthly | These benchmark bonds are issued every single month to ensure high liquidity. The 10-year is the most closely watched. |
| 20-year, 30-year | Monthly | Also issued monthly to meet the strong, steady demand from life insurers and pension funds (ALM buyers). |
| 40-year | Bi-Monthly (Every 2 months) | Issued less frequently as it's a more specialized product. |
| Inflation-Indexed (JGBi) | Quarterly (Every 3 months) | This is a small, niche market, so issuance is infrequent. |
New Issues vs. Reopenings: The Core of JGB Liquidity
One of the most critical—and often misunderstood—aspects of JGB issuance is the distinction between new issues and reopenings (re-issuances). This mechanism is fundamental to maintaining deep, liquid benchmark bonds across the yield curve.
New Issues vs. Reopenings
Definition:
A brand new bond with a unique ISIN code, newly set coupon rate, and fresh maturity date.
Coupon Setting:
The MOF sets the coupon just before the auction to match current market yields (typically rounded to nearest 0.1%). This ensures the bond trades near par (¥100).
Frequency (10Y Example):
New 10-year benchmark created quarterly (March, June, September, December)
Typical Auction Size:
¥800 billion - ¥1.2 trillion
Purpose:
- Creates new "on-the-run" benchmark
- Resets coupon to current market rates
- Establishes fresh price discovery point
Definition:
Additional auction of an existing bond—same ISIN, same coupon, same maturity. Increases outstanding amount of that specific bond.
Coupon:
Unchanged—uses the original coupon set at new issuance. This means reopenings often trade at premium/discount to par.
Frequency (10Y Example):
Typically reopened 2-3 times in the months following new issue
Typical Auction Size:
¥800 billion - ¥1.2 trillion (same as new issue)
Purpose:
- Builds outstanding to ¥3-5 trillion
- Creates deep, liquid benchmark issue
- Maintains orderly supply without fragmenting market
Why Reopenings Matter: The Liquidity Imperative
Reopenings are not just a convenience—they are essential to maintaining a healthy, functional JGB market. Here's why:
| Benefit | Explanation |
|---|---|
| Concentrated Liquidity | By reopening the same bond 2-3 times, the MOF creates a single, large issue with ¥3-5 trillion outstanding. This concentrated size makes it easier to buy/sell large blocks without moving the market. |
| Benchmark Formation | Large, liquid bonds become natural "benchmarks" for pricing corporate bonds, swaps, and other fixed-income instruments. Without reopenings, the market would fragment across dozens of small, illiquid issues. |
| Futures CTD Stability | Futures contracts track the CTD bond (Section 2.6). A large, liquid reopened bond is more likely to become and remain the CTD, reducing basis risk for hedgers. |
| Reduced Issuance Costs | Auctions of liquid bonds attract more bidders and tighter bid-to-cover ratios, lowering the government's borrowing costs through better pricing. |
| International Comparability | US Treasuries, German Bunds, and UK Gilts all use reopenings extensively. Japan's approach aligns with global best practices, making JGBs accessible to international investors familiar with this structure. |
Worked Example: Lifecycle of a 10-Year JGB Benchmark
Example: JGB #385 (Hypothetical Issue)
March 2025 - New Issue
- MOF creates JGB #385, 10-year maturity (Mar 20, 2035)
- Coupon set at 1.0% (matching current 10Y yield)
- ISIN: JP1103851ABC (unique identifier)
- Auction: ¥1.0 trillion issued
- Total Outstanding: ¥1.0 trillion
April 2025 - First Reopening
- MOF reopens same JGB #385
- Coupon: 1.0% (unchanged)
- ISIN: JP1103851ABC (same as March)
- Auction: ¥1.2 trillion additional
- Total Outstanding: ¥2.2 trillion
May 2025 - Second Reopening
- MOF reopens same JGB #385 again
- Auction: ¥1.3 trillion additional
- Total Outstanding: ¥3.5 trillion
June 2025 - New Benchmark Created
- MOF issues JGB #386 (new benchmark)
- JGB #385 becomes "off-the-run" (no longer the current benchmark)
- JGB #385 remains highly liquid with ¥3.5T outstanding and continues trading actively
💡 Key Insight: The ¥3.5 trillion outstanding in JGB #385 makes it one of the most liquid fixed-income instruments in Asia. This would be impossible if the MOF issued a new bond every month instead of reopening.
Liquidity Supply Auctions (流動性供給入札)
In addition to regular calendar auctions, the MOF conducts Liquidity Supply Auctions (ryūdōsei kyōkyū nyūsatsu / 流動性供給入札) to maintain market functioning during periods of stress or to enhance liquidity in specific off-the-run issues.
What Are Liquidity Supply Auctions?
These are ad hoc, unscheduled auctions where the MOF sells additional amounts of existing (usually off-the-run) bonds to address temporary market illiquidity or seasonal demand spikes.
| Feature | Description |
|---|---|
| Announcement | Typically announced 1-2 weeks before auction (unlike regular calendar auctions scheduled months ahead) |
| Target Bonds | Usually off-the-run benchmarks or bonds with temporary scarcity in the repo market |
| Auction Size | Smaller than regular auctions (¥200-500 billion typical) |
| Purpose | Alleviate repo fails, smooth yield curve discontinuities, or meet unexpected institutional demand |
| Frequency | Irregular—used only when needed (0-10 times per year) |
Historical Use Cases
- March 2020 (COVID-19 Crisis): MOF conducted liquidity supply auctions for 10Y and 20Y JGBs as the pandemic caused market dysfunction and liquidity hoarding by foreign investors.
- Fiscal Year-End (March): Seasonal liquidity auctions to meet Japanese banks' balance sheet needs before fiscal year-end reporting.
- BOJ Policy Changes: When the BOJ adjusts YCC targets or conducts large operations, the MOF may supply additional bonds to smooth market adjustment.
References
- Japan Ministry of Finance. "JGB Issuance Plan & Calendar." Available at: https://www.mof.go.jp/english/policy/jgbs/debt_management/plan/index.htm.
- Japan Ministry of Finance. "Auction Calendar." Available at: https://www.mof.go.jp/english/policy/jgbs/auction/calendar/index.htm.