JGB
Japanese Government Bond (JGB) refers to debt securities issued by the Government of Japan through the Ministry of Finance to finance public spending. JGBs are issued in a range of maturities from short-term bills (3, 6, and 12 months) to long-term bonds with maturities up to 40 years, and most carry semiannual coupon payments. They are typically issued at or near par value.
Primary issuance occurs at regular auctions conducted by the Ministry of Finance, with participation by banks,
Monetary policy by the Bank of Japan has a strong influence on JGB prices and yields, including
JGBs serve as a benchmark for Japanese rates and as a core component of many investors’ fixed-income