Having reviewed a draft proposal, Reuters reported that the Japanese Finance Ministry panel is likely to urge the government to issue shorter-duration debt to reduce interest-rate risk.
Additional takeaways
Govt could adjust issuance size of super-long JGBs as life insurers unlikely to significantly increase holdings.
Banks have scope to increase holdings of JGBs, can play big role in ensuring smooth debt issuance.
Market reaction
At the time of writing, USD/JPY is trading flat near 157.85, unperturbed by the above headlines.