WHAT’S NEW
Progress toward Resuming
the Issuance of Inflation-Indexed Bonds

Issuance of Inflation-Indexed Bonds (JGBi)
※1
, introduced in March 2004, have been
suspended since October 2008, as the Lehman Shock in the same year brought about a
significant decline of liquidity in the market through increased needs for cash of the financial
institutions as well as prolonged future deflation expectations.

In the JGB Issuance Plan for FY2012, the Ministry announced that "practical discussions
will be held with market participants on detailed product designs etc. toward resuming the
issuance of Inflation-Indexed Bonds". Since February 2012, the Working Group for
Resumption of Issuance of Inflation-Indexed Bonds has been held among the market
participants and the Ministry. After the series of discussions in the Working Group, the new
product designs for resumption have been formulated as follows.

○ New Product Designs of Inflation-Indexed Bonds
The principal will be guaranteed at maturity (deflation floor). In case where the indexation
coefficient falls below 1 at maturity, the Bonds will be redeemed at the face value. Other
features are the same as the existing JGBi
※2※3
.


Quarterly Newsletter of the Ministry of Finance, Japan
JAPANESE GOVERNMENT BONDS
April 2012

Contents 1
What’s New 2
JGB Primary
Market 3
The Auctions for
Enhanced-Liquidity
and JGB Buy-Back 4
JGB Secondary
Market 5
JGB Outstanding


adjusted principal will fall below its face value.
②In case where the indexation coefficient at maturity is above 1,
the principal and the interest will be paid based on the inflation-
adjusted principal per se.
③In case where the indexation coefficient at maturity is below 1,
principal will be redeemed at its face value.
(Note) Deflation floor has no effect on interests during the maturing
p
eriod or at maturit
y
.
1
Indexation
Coefficient
②
①③
10 years
Issuance of the
Reconstruction Supporters’ Bonds
for Retail InvestorsWith a view to encouraging a wide range of public to fund expenditures for reconstruction from the Great East
Japan Earthquake, the Ministry started to offer the Reconstruction Bonds for Retail Investors (10-Year
Floating-Rate, 5-Year Fixed-Rate and 3-Year Fixed-Rate) since December 2011. In addition, the Ministry has
also started to offer the Reconstruction Supporters’ Bonds for Retail Investors with new product characteristics
since March 2012 (issued in April). The Reconstruction Supporters’ Bonds for Retail Investors, while based on


Reconstruction special areas
and pigeons
Big fishing boat and ears of rice
Common
side

Auction Results
（Bonds）
Auction Date Type of Security
Issue
Number
Maturity Date
Nominal
Coupon
Amounts of

Competitive

Bids

(billion yen)
Amounts of

Bids

Accepted
(billion yen)
Yield at the
Lowest
Accepted
Price
Yield at the
Average
Price
Amounts of


1/31/2012 2-year 313 2/15/2014 0.1% 13,460.5 2,516.9 0.130% 0.128% 2.399 179.6 271.6
2/ 2/2012 10-year 320 12/20/2021 1.0% 7,439.2 2,000.1 0.964% 0.963% 4.760 194.3 328.2
2/ 9/2012 40-year 4 3/20/2051 2.2% 1,443.9 399.5 2.140% - - - 36.4
2/16/2012 5-year 102 12/20/2016 0.3% 8,924.5 2,296.0 0.297% 0.295% 1.554 201.7 102.9
2/23/2012 20-year 133 12/20/2031 1.8% 2,791.8 1,002.3 1.759% 1.755% - 96.6 0.0
2/28/2012 2-year 314 3/15/2014 0.1% 12,882.6 2,503.9 0.112% 0.111% 1.952 193.2 0.0
3/ 1/2012 10-year 321 3/20/2022 1.0% 6,505.3 1,996.6 0.974% 0.973% 8.912 193.5 230.9
3/ 6/2012 30-year 36 3/20/2042 2.0% 2,544.9 641.6 1.968% 1.964% - 57.4 86.7
3/ 8/2012 5-year 103 3/20/2017 0.3% 8,595.8 2,300.8 0.295% 0.293% 2.584 195.7 0.0
3/15/2012 20-year 134 3/20/2032 1.8% 3,256.4 999.7 1.803% 1.795% - 99.5 27.1
3/29/2012 2-year 315 4/15/2014 0.1% 14,088.5 2,508.7 0.117% 0.117% 1.230 189.1 117.2
Auction Results
（Treasury Discount Bills）
Auction Date Type of Security
Issue
Number
Maturity Date
Amounts of

Competitive Bids

(billion yen)
Amounts of

Bids Accepted

(billion yen)
Yield at the
Lowest
Accepted

4/23/2012
56,742.50 5,557.43 0.1002% 0.0994% 472.40
1/20/2012 Approx. 2-month
253
3/23/2012
31,651.10 2,324.46 0.0975% 0.0956% 175.45
1/25/2012 3-month
254
4/27/2012
44,926.00 5,649.07 0.1016% 0.1012% 370.78
2/1/2012 3-month
255
5/7/2012
51,965.70 5,568.16 0.1023% 0.1007% 431.63
2/7/2012 6-month
256
8/10/2012
35,143.60 3,227.01 0.1023% 0.1003% 272.80
2/8/2012 3-month
257
5/14/2012
74,912.00 5,510.05 0.1023% 0.1015% 459.80
2/10/2012 Approx. 2-month
258
4/9/2012
28,254.50 2,306.11 0.1014% 0.1007% 193.80
2/13/2012 1-year
259
2/20/2013
11,030.40 2,294.09 0.1048% 0.1038% 205.85

5/25/2012
26,419.40 2,296.40 0.1014% 0.1008% 203.50
3/21/2012 3-month
268
6/25/2012
46,414.70 5,499.18 0.1023% 0.1019% 490.70
3/23/2012 3-month
269
7/2/2012
39,200.30 5,517.03 0.1018% 0.1018% 512.90
Auction Calendar for Apr. – Jun. 2012
Auction Date Issue Auction Date Issue Auction Date Issue Auction Date Issue
4/ 3 (Tue) 10-year 4/24 (Tue) T-Bills(3-month) 5/17 (Thu) 5-year 6/ 7 (Thu) 30-year
4/ 4 (Wed) T-Bills(3-month) 4/24 (Tue) 20-year 5/22 (Tue) T-Bills(Approx.2-month) 6/12 (Tue) 5-year
4/ 5 (Thu) T-Bills(6-month) 4/26 (Thu) T-Bills(3-month) 5/22 (Tue)
Auction for Enhanced-liquidity
6/13 (Wed) T-Bills(Approx.2-month)
4/ 5 (Thu)
Auction for Enhanced-liquidity
4/26 (Thu) 2-year 5/24 (Thu) T-Bills(3-month) 6/14 (Thu) T-Bills(3-month)
4/ 9 (Mon) T-Bills(Approx.2-month) 5/ 8 (Tue) 10-year 5/24 (Thu) 20-year 6/14 (Thu) 20-year
4/11 (Wed) T-Bills(3-month) 5/ 9 (Wed) T-Bills(6-month) 5/29 (Tue) 2-year 6/18 (Mon) T-Bills(1-year)
4/12 (Thu) 30-year 5/10 (Thu) T-Bills(3-month) 5/31 (Thu) T-Bills(3-month) 6/21 (Thu) T-Bills(3-month)
4/17 (Tue) T-Bills(1-year) 5/10 (Thu)
Auction for Enhanced-liquidity
6/ 1 (Fr i)
Auction for Enhanced-liquidity
6/21 (Thu)
Auction for Enhanced-liquidity
4/17 (Tue) 5-year 5/15 (Tue) 40-year 6/ 5 (Tue) 10-year 6/26 (Tue) 2-year

10-year
20-year
0.4 9.7 32.5 0.5 8.2 5.0 61.3 0.4 170.5 10.0 0.5
＃101 ＃102 ＃111 ＃11 6 ＃122 ＃126 ＃128 ＃129 ＃4 ＃5 ＃7 ＃8 ＃15 ＃16 ＃17 ＃18 ＃20 ＃22 ＃26
3/22/ 2012
20-year
30-year
5.0
6.9 10.0 12.0 10.3 24.5 26.5 20.0 8.0 0.9 3.0 7.0 0.6 114.2 0.2 30.7 4.0 10.7 4.9
＃290 ＃291 ＃295 ＃300 ＃308 ＃311 ＃316 ＃55 ＃57 ＃58 ＃60 ＃61 ＃68 ＃70 ＃74 ＃87 ＃88
2/21/ 2012
10-year
20-year
88.2 7.3 1.1 10.0 26.0 90.1 4.0 2.9 15.1 0.1 9.7 15.2 4.9 0.2 2.0 21.5 0.1
＃125 ＃4 ＃7 ＃8 ＃9 ＃11 ＃13 ＃16 ＃17 ＃18 ＃19 ＃20 ＃21 ＃22 ＃24 ＃25 ＃26 ＃31 ＃32
2/7/ 2012
20-year
30-year
5.0 7.7 29.1 26.5
1.0 1.0 11.1 0.6 20.0 78.0 0.6 9.2 16.5 62.5 6.0 12.1 1.3 1.0 10.3
＃287 ＃291 ＃300 ＃302 ＃306 ＃316 ＃55 ＃58 ＃62 ＃67 ＃76 ＃82 ＃87 ＃91 ＃94
1/23/ 2012
10-year
20-year
82.8 7.6 93.8 14.3 2.2 62.7 11.7 2.0 0.5 4.6 1.0 0.5 12.9 2.0 0.5
＃125 ＃7 ＃8 ＃11 ＃13 ＃14 ＃15 ＃17 ＃18 ＃20 ＃21 ＃26 ＃32
1/6/ 2012
20-year
30-year
18.7 13.0 25.0 0.5 51.4 81.9 3.0 29.5 16.0 5.5 38.9 15.0 1.0

3
THE AUCTIONS FOR ENHANCED-LIQUIDITY AND JGB BUY-BACK

（billion yen）
0.0
500.0
1,000.0
1,500.0
2,000.0
2,500.0
～1Y 1Y～5Y 5Y～10Y 10Y～20Y 20Y～
Jan. to Mar. 2012
Oct. to Dec. 2011
Jul. to Sep. 2011
Apr. to Jun. 2011
624.4
（
years to maturity
）
（billion
876.4
2,359.6
185.3
601.0
121.2
161.3
63.5

289
290
291
292
JL38
JL39
293
294
295
296
JL40
297
298
299
300
JL41
JL42
301
302
303
304
JL43
305
306
307
JL44
JL45
308
309
JL46

JL71
JL72
JL73
JL74
JL75
JL76
JL77
JL78
JL79
JL80
JL81
JL82
JL83
JL84
JL85
JL86
JL87
JL88
JL89
JL90
JL91
JL92
JL93
JL94
JL95
JL96
JL97
JL98
JL99
(billion yen)

JL117
JX03
JL118
JL119
JL120
JL121
JL122
JX04
JL123
JL124
JL125
JL126
JL127
JX05
JL128
JL129
JL130
JL131
JX06
JX07
JX08
JX09
JX10
JX11
JX12
JX13
JX14
JX15
JX16
JX17

(Remaining maturities)
②Remaining maturity : approx.15‐～29‐year
①Remaining maturity : approx.5‐～15‐year

1.5
2.0
2.5
2011/12/30
2012/3/30
40353020
25
151050
(%)
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
United Kingdom Germany
United States Japan
（％）
<2008> <2009>
<2010> <2011>
<2012>
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0


（％）
2012/3/30 Recent Indicative Price
Treasury Discount Bills (3-month) 0.100% Treasury Discount Bills (6-month) 0.100%
Treasury Discount Bills (1-year) 0.100%
<2010>
<2012>
<2008> <2009> <2011>
-0.05
0.05
0.15
0.25
0.35
0.45
0.55
0.65
0.75
0.85
0.95
Call Rate (Uncollateralized Overnight)
TIBOR 3-months (Euro-Yen)
Basic Loan Rate
<2012>
<2008>
<2009> <2010> <2011>
(%)
-3.5
-3.0
-2.5
-2.0
-1.5

900
1,000
1,100
1,200
Treasury Discount Bills
Financing Bills
Treasury Bills
Medium Term Bonds
Long Term Bonds
<2008>
<2009>
<2010> <2011>
(trillion yen)
<2012>


Source: Ministry of Finance
General Bonds Issuance Amount and Outstanding
Time-to-Maturity Structure of Outstanding JGB （December 2011）
Source: Ministry of Finance
Outstandin
g
STRIPS
Note 1: Issuance Amount: revenue basis, F
Y
2000-2010: actual, FY2011: fourth supplementary budget, FY2012: initial budget.
Note 2: Outstanding: nominal basis, FY2000-2010: actual, FY2011-FY2012: estimates.
Source: Ministr
y
of Finance
Breakdown by JGB Holders （December 2011,QE）
Note1 : "JGB" includes FILP Bonds, does not include
T
-Bills.
Note2 : "Banks, etc" includes Japan Post Bank, "Securities investment trust"
and "Securities Companies"
Note3 : "Life and Nonlife insurance" includes Japan Post Insurance.
Source: Bank of Japan
Holding of JGBs by Foreign Investors JGB Holding by Retail Investors
Source: Bank of Japan
Note: Outstanding "JGBs
f
or retail investors" at March-12 is calculated to
〔
aggregate
issues of ¥36.3 trillion〕-〔redemption before maturity of ¥8.5 trillion〕-〔aggregate

89.3
86.3
143.1
165.0
159.2
0
25
50
75
100
125
150
175
00 01 02 03 04 05 06 07 08 09 10 11 12
(FY)
100
200
300
400
500
600
700
800
Outstanding (right-hand scale)
Issuance Amount (left-hand scale)
(trillion yen) (trillion yen)
16.7
20.0
19.2
23.6

3.5%
3.3%
3.9%
4.1%
4.2%
4.9%
4.6%
4.6%
4.5%
5.3%
5.1%
5.5%
6.1%
5.7%
6.4%
7.0%
6.8%
7.0%
5.7%
4.6%
4.7%
5.0%
6.5%
6.7%
5.8%
4.9%
5.2%
5.1%
7.9%
6.4%

1.43
4.70
0.73
2.14
8.58
7.03
57.40
9.23
7.49
28.48
72.84
30.89
22.65
13.53
14.26
32.91
111.94
37.18
9.19
57.72
32.08
7.05
9.54
10.51
45.65
0
10
20
30
40

Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12
STRIPS(2-year bonds) STRIPS(5-year bonds)
STRIPS(10-year bonds) STRIPS(20-year bonds)
STRIPS(30-year bonds) STRIPS(40-year bonds)
(billion yen)
3.3
4.8
6.5
8.4
10.1
12.4
14.0
15.3
17.1
20.7
22.0
23.2
24.1
25.8
26.5
26.7
26.8
27.4
27.5
27.6
27.5
27.7
27.7
27.2
27.3

36.7
36.0
35.6
35.5
35.0
34.4 34.4
34.1
33.0
31.1
30.4
29.5
28.5
2.0
18.7
0.4
0.7 1.0
4.3%
4.1%
3.9%
3.8%
4.5%
4.7%
4.9%
5.0%
5.2%
5.2%
5.3%
5.3%
5.3%
5.2%

40
45
Mar - 03 Mar - 04 Mar - 05 Mar - 06 Mar - 07 Mar - 08 Mar - 09 Mar - 10 Mar - 11 Mar - 12
-0.5%
0.5%
1.5%
2.5%
3.5%
4.5%
5.5%
Total JGBs held by retail investors (left)
Outstanding "JGBs for retail investors" (left)
Ratio of JGBs held by retail investors
（right）
(trillion yen)
Households
28.5
3.8%
Foreigners
50.9
6.7%
Pension Funds
28.5
3.8%
Public Pensions
69.7
9.2%
Life and Nonlife
Insurance
169.1

This printed matter was prepared using only the material fit for recycling to printing papers(Rank A) according to the judgment criteria“printing”of the basic policy under the
Green Purchasing Law

FY2010
FY2007 FY2008 FY2009 FY2010
Apr Jun. Jul Sep. Oct Dec.
Real GDP（chained 2005）
1.8 -3.7 -2.1 3.1 -0.3 1.7 -0.2
Domestic Demand
（0.6） (-2.7） (-2.2) (2.4） (0.7） （1.0） (0.5)
Private Consumption
0.8 -2.0 1.2 1.5 0.3 1.0 0.4
Residential Investment
-14.5 -1.1 -21.0 2.3 -2.4 4.5 -0.7
Non-Resi. Investment
3.0 -7.7 -12.0 3.5 -0.1 0.3 4.8
Public Investment
-4.9 -6.7 11.5 -6.8 6.6 -1.6 -2.2
Net Exports
（1.2） (-1.1） (0.2) （0.8） （-1.0） (0.8） (-0.6)
Index of Industrial Production (2005 av.=100)

2.7 -12.7 -8.8 8.9 -6.8 -2.1 -2.8
Unemployment Rate
3.8 4.1 5.2 5.0 4.6 4.4 4.5
(
Note: Percent changes from previous period (quarterly figures are seasonally adjusted). The figures in（ ）indicate the contribution to change in GDP.
Source: Cabinet Office; Ministry of Internal Affairs and Communications; Ministry of Economy, Trade and Industry
Source: Cabinet Office, Ministry of Internal Affairs and Communications,
Bank of Japan
Source: Ministry of Finance
Note: For Japan and the U.S.A., where pension systems are based on a
Modified Funded System, the figures exclude social security funds,
which are regarded as future liabilities in real terms
Source: OECD “Economic Outlook No. 90”

Sou
r
ce: OECD “Economic Outlook No. 90”

Prices
Debt Securities Investment in Japan
by Non-Residents
General Government Financial Balances （SNA Basis）

General Government Gross Debts （SNA Basis）
Economic Indicators
－8－
-14.0
-12.0
-10.0
-8.0
-6.0
-4.0
-2.0

（％）
(As a percentage of GDP)
-9.0
-7.0
-5.0
-3.0
-1.0
1.0
3.0
5.0
7.0
9.0
（％）
CGPI(Corporate Goods Price Index)
CPI (Nationwide, excluding fresh food, including energy prices)
GDP Deflator
Change from the previous year
0.6%
0.1%
-1.8%
<2010>
<2011>
<2007> <2008> <2009>
-6
-5
-4
-3
-2
-1
0