Japan will be cutting down the whales by 375 million dollars in the issuance of super long term bonds in the auctions of October and December.

Japan will reduce the supply of super-long bonds in October and December by ¥100 billion (675 million USD) per auction, down from ¥350 billion to ¥250 billion. This decision affects bonds maturing from 15.5 to 39 years, part of the enhanced liquidity auctions. This is the second reduction this year targeting long-term bonds due to fluctuating demand.

Meanwhile, Japan will increase the issuance of bonds with a maturity of 1 to 5 years, rising from ¥600 billion to ¥700 billion in November. This is expected to attract demand from domestic banks, which are considered the most stable sector for the supply and demand of bonds.

Despite concerns, foreign investors continue to buy Japan's ultra-long bonds thanks to the flattening of the yield curve and reduced worries about financial conditions following political changes. The Bank of Japan's stance on higher interest rates and the easing of financial concerns have contributed to attracting foreign investor interest in long term bonds.