Japan to Auction 10-Year Inflation-Linked Bonds on August 15, 2025
Tokyo, Japan – The Ministry of Finance (MOF) of Japan has announced the upcoming auction of the 30th issue of its 10-year inflation-linked government bonds (JGBs), scheduled to take place on August 15, 2025. The official announcement, published on the MOF’s Japan Government Bonds (JGBs) website, provides a timely opportunity for investors to participate in the Japanese debt market.
Inflation-linked bonds are a type of debt security whose principal and interest payments are adjusted in line with inflation. This mechanism is designed to protect investors from the erosion of purchasing power that can occur during periods of rising prices. For the 10-year inflation-linked JGBs, the principal amount will be adjusted based on changes in a specified inflation index over the life of the bond, typically a consumer price index. This adjustment is then applied to the coupon payments as well, ensuring that the real return on the investment remains stable.
The specific terms and conditions of this auction, including the coupon rate, issuance size, and other relevant details, will be made available by the Ministry of Finance closer to the auction date. Investors interested in participating are encouraged to monitor the official MOF JGBs website for further announcements and documentation.
The issuance of these inflation-linked bonds reflects Japan’s ongoing efforts to diversify its government debt offerings and cater to a broader range of investor needs. By providing instruments that offer protection against inflation, the MOF aims to attract a wider investor base, including those seeking to preserve the real value of their capital over the medium to long term.
The auction on August 15, 2025, represents a significant event in the Japanese government debt market. It offers an opportunity for institutional investors, financial institutions, and potentially retail investors (through intermediaries) to acquire these inflation-protected securities. Such issuances can also provide valuable insights into market expectations regarding future inflation trends in Japan.
Further details regarding the bidding process and settlement procedures will be communicated by the Ministry of Finance through its official channels. Prospective bidders should ensure they are familiar with the auction rules and requirements to participate effectively.
10年物価連動国債（第30回）の入札発行（令和7年8月15日入札）
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財務省 published ’10年物価連動国債（第30回）の入札発行（令和7年8月15日入札）’ at 2025-08-15 01:30. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article only.