Japan's Government Debt Hits 1,346 Trillion Yen as Ministry Extends MaturitiesA · FULL TRANSLATION
- Government bonds, borrowings and financing bills totalled 1,346.68 trillion yen at end-June, up 2.84 trillion from March.
- Ordinary government bonds accounted for 1,110.88 trillion yen, including 4.21 trillion of reconstruction bonds and 5.12 trillion of GX transition bonds.
- Long-term bonds of ten years and over rose 5.67 trillion yen while short-term bonds fell 2.90 trillion.
- Borrowings fell 3.79 trillion yen, driven by a 4.46 trillion drop in short-term borrowing.
- Government-guaranteed debt stood at 27.43 trillion yen; end-September figures are due November 10.
Japan's central government debt reached 1,346.68 trillion yen at the end of June, up 2.84 trillion from March. Ordinary government bonds account for 1,110.88 trillion of that, alongside 88.29 trillion in fiscal investment and loan bonds, 40.54 trillion in borrowings and 94.40 trillion in financing bills. Government-guaranteed debt stands separately at 27.43 trillion.
The maturity mix moved in one direction this quarter. Long-term bonds of ten years and over rose 5.67 trillion and medium-term bonds rose 3.82 trillion, while short-term bonds fell 2.90 trillion and short-term borrowings dropped 4.46 trillion. The Ministry of Finance is pushing debt out along the curve — a defensive move in a tightening cycle that locks in cost now to avoid rolling short paper at ever higher rates.
That matters because the Bank of Japan has raised its policy rate by a cumulative one point since March 2024, to around 1.0%, and July's summary of opinions shows members arguing for a faster pace. Interest costs on a stock this size do not jump; they ratchet up as maturing bonds are refinanced.
The next release covers end-September and is due November 10. Until then, watch auction results and long-term JGB yields — Flat 35 mortgages already price at 3.29%.
The Ministry of Finance published its quarterly statement of outstanding government bonds, borrowings and guaranteed obligations as of the end of June 2026 on August 10.
Government bonds, borrowings and financing bills together totalled 1,346.68 trillion yen, an increase of 2.84 trillion yen from the end of March. Ordinary government bonds accounted for 1,110.88 trillion yen, up 6.59 trillion, including 4.21 trillion yen of reconstruction bonds and 5.12 trillion yen of GX economic transition bonds.
By maturity, long-term bonds of ten years and over stood at 857.92 trillion yen, up 5.67 trillion; medium-term bonds of two to five years at 211.86 trillion yen, up 3.82 trillion; and short-term bonds of one year or less at 41.10 trillion yen, down 2.90 trillion.
Fiscal Investment and Loan Program bonds came to 88.29 trillion yen, down 2.64 trillion. Other categories included 7.33 trillion yen of subscription and contribution bonds, 1.32 trillion yen of Development Bank of Japan crisis-response bonds and 3.85 trillion yen of bonds for the Nuclear Damage Compensation and Decommissioning Facilitation Corporation.
Borrowings totalled 40.54 trillion yen, down 3.79 trillion, with short-term borrowings of one year or less falling 4.46 trillion to 31.50 trillion. Financing bills rose 2.10 trillion to 94.40 trillion yen.
Government-guaranteed debt stood separately at 27.43 trillion yen, up 207.1 billion. Figures are rounded. The next release, covering end-September, is scheduled for November 10, 2026.