South Korea Remains MSCI Emerging Market Despite Reform Progress 
Australian Household Spending Rebounds Strongly in May as Travel and Dining Drive Consumer Growth 
Australia Jobs Growth Strengthens Rate Hike Outlook 
Gold Prices Rise Above $4,000 as Inflation Data and Weaker Dollar Boost Demand 
BOJ Hawk Signals Faster Interest Rate Hikes Amid Inflation Risks 
US Dollar Slips After PCE Inflation Data Eases Fed Rate Hike Expectations 
Trump Requests $11 Billion More in Farm Aid as Rising Costs Pressure U.S. Farmers 
Asian Currencies Trade Mixed as Yen Hovers Near 40-Year Low, Dollar Holds Firm on Fed Outlook 
Japan Signals Preference for Low Interest Rates as BOJ Policy Debate Intensifies 
Gold Drops Below $4,000 as Strong US Dollar and Fed Rate Hike Expectations Pressure Bullion 
Gold Prices Fall Below $4,000 as Strong Dollar, Fed Rate Hike Bets Weigh on Bullion 
Asian Markets Rally as Micron and Qualcomm AI Outlook Lifts Global Tech Stocks 
S&P Affirms Brazil’s BB Credit Rating with Stable Outlook Amid Fiscal Challenges 
Oil Prices Drop as Strait of Hormuz Shipping Recovers 
Oil Prices Rebound as Strait of Hormuz Tensions Return After Ship Attack Near Oman 
Morgan Stanley Sees Chinese Auto Market Recovery Gaining Momentum in Late Summer 
Japan's finance ministry is reportedly considering scaling back its buybacks of inflation-linked government bonds as investor appetite for these securities continues to grow on the back of rising inflation expectations. Two sources familiar with the discussions revealed the development on Monday, though both requested anonymity given the sensitivity of the matter.
Market-based inflation expectations, tracked through the break-even inflation rate, crossed 1.9% for the first time in late January — a threshold that has made inflation-protected securities increasingly attractive to institutional and retail investors alike. These bonds are structured so that both principal and interest payments adjust in accordance with consumer price growth, offering a natural hedge against inflation risk.
Under the proposed plan, the ministry would reduce its buyback volumes to 15 billion yen each in April and June — roughly half the 20 billion yen purchased monthly across January, February, and March. Officials are expected to consult market participants on the proposal in the coming weeks before reaching a final decision.
Notably, the issuance volume for inflation-linked bonds is expected to remain steady at 250 billion yen for May, signaling that the government aims to support continued market development even as it trims repurchase activity.
Japan originally launched inflation-linked bonds in 2004, but suspended issuance in 2008 as deflationary pressures threatened principal losses. The program was revived in 2013 under former Prime Minister Shinzo Abe's aggressive anti-deflation agenda. Since then, authorities have worked to strengthen the market through guaranteed principal protections and consistent buyback programs.
Inflation pressures in Japan had already been building before the Middle East conflict, which has since provided additional upward momentum to global prices. Despite a positive shift in the supply-demand gap for the first time in two quarters, economists caution that a sustained demand recovery still requires more time to materialize.
