Super-long JGB supply/demand concerns: How to view issuance reduction impact on supply/demand
Key points
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Two key factors for supply/demand balance are JGB issuance amount that need to be absorbed by market (outstanding balance) and market sentiment
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Supply/demand concerns partly due to deteriorating sentiment, difficult to determine appropriate scale of issuance reductions
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Will reducing issuance each time by JPY100 billion for 30yr, 40yr, and TAP (15.5-39yr) ease supply/demand concerns in long-end zone?
