The Japanese Ministry of Finance recently announced a significant decision—to substantially reduce the issuance scale of ultra-long-term government bonds in the next fiscal year, marking the lowest level in nearly 17 years. This move is not unfounded but a direct reflection of market realities.

Looking back at recent market trends, Japanese government bond yields have been rising due to concerns over fiscal outlooks, even reaching new highs at times. Accompanying this has been a clear sell-off pressure in the bond market—investors are re-evaluating the risk premiums of Japanese debt. Against this backdrop, the Ministry of Finance's decision appears quite pragmatic.

Specifically, the issuance scale of ultra-long-term government bonds will be reduced by nearly one-fifth compared to the previous fiscal year. At the same time, authorities have adjusted the issuance structure of bonds with different maturities, attempting to find a balance amid market volatility.

However, it is important to note that these measures are more short-term market responses rather than fundamental solutions. The data is clear—Japan's public debt remains among the highest levels in developed economies. The current adjustments in fiscal policy orientation and shifts in central bank monetary policy are having tangible impacts on the global bond market. Changes in this policy mix are also worth close attention from global investors, especially those with macro liquidity-sensitive asset allocation strategies.