Japan considers issuing 50-year bonds

Japan is currently considering a possibility of issuing 50-year bonds. That’s going to be the first issue of such bonds and the longest maturity of Japanese government debt in the postwar epoch. The Japanese authorities are simply eager to take advantage of the ultralow rates resulting from the BOJ’s monetary easing, as sources already familiar with the matter state.    

The given move could contribute to observations that Tokyo’s growth-revival plan is getting quite similar to so-called helicopter money, especially considering if Japan’s major bank purchases the debt later as part of its campaign to stop deflation.

Well, if the Japanese government makes up its mind to go ahead with its 50-year bond plan, then an outline of it could be officially announced as part of an economic-stimulus package the administration of Prime Minister Shinzo Abe is expected to unveil in coming days. Apparently, the 50-year bonds could be released as soon as the current fiscal year, which ends March 2017.

Bonds

China’s Politburo wants to keep Yuan steady

China’s all mighty Communist Party Politburo has made up its mind to raise domestic demand by simply cutting taxes. The governing body has stressed that the given move is expected to keep the country’s national currency rate steady.

The Chinese government is on the verge of implementing policies to drastically relieve the burden of taxes as well as fees on companies in this Asian country, as Xinhua News Agency posted on Tuesday.

Apart from that, the Chinese government is going to boost its efforts aimed at fending off financial risks while maintaining the national currency exchange rate at rather a reasonable level. That’s what market participants can learn from the Xinhua report published following a Politburo gathering chaired by President Xi Jinping.

Downward pressure on economic growth is still huge and there’re some serious risks, which require high attention, as the Politburo states, without specifying anything.

Besides this, the Politburo vowed to stabilize market hopes with steady economic policies, thus reiterating recent official remarks.

 

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