Japan's Ministry of Finance may reduce its issuance of inflation-linked Japanese government bonds in the next fiscal year, two government sources said, as inflation expectations have been hit by the coronavirus outbreak and a market selloff.
The ministry will discuss the idea next week with primary dealers including banks and brokerage firms, said the sources, who declined to be identified because the plan is not yet public. The next scheduled issuance in May will likely be cut from a planned 400 billion yen ($3.8 billion) to 300 billion yen, they said.