Japan Ministry of Finance Roundtable

Today, there is more than enough liquidity in the domestic market to absorb the plentiful supply of government bonds (JGBs) issued by the Japanese government. Although retail investors have scaled back their buying in recent months, domestic institutions such as banks and the Japanese postal system have continued to add to their positions in the first quarter of fiscal 2010. Resilient domestic demand, analysts believe, will keep yields low and stable over the coming months.