Japan to issue record amount of extra bonds worth over 18 trln yen -sources

TOKYO, April 7 (Reuters) – Japan will sell a record amount of additional bonds, worth more than 18 trillion yen ($165 billion), to fund its coronavirus stimulus package, pushing overall market issuance beyond 147 trillion yen, two government sources with direct knowledge told Reuters.

The amount of extra bond issuance in the new fiscal year from April will exceed the previous record of 16.9 trillion yen issued during the 2009 global financial crisis, they said.

The sources were speaking on condition of anonymity because the debt issuance plan has not yet been finalised.

All the maturities, except for 40-year bonds, inflation-linked bonds and liquidity enhancement auctions, are subject to increase, they said.

While 40-year bonds and liquidity enhancement auctions remain unchanged from an initial plan, inflation-linked bonds will be cut by 1.2 trillion yen a year, they added.

Prime Minister Shinzo Abe has pledged to roll out a stimulus package worth 108 trillion yen ($990 billion), or a fifth the size of the economy, vowing to take “all steps” to combat deepening fallout from the coronavirus pandemic. ($1=108.8000 yen) (Reporting by Takaya Yamaguchi; Writing by Tetsushi Kajimoto; Editing by Clarence Fernandez)

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