TOKYO (AFX) - The Ministry of Finance is considering increasing by about 300 bln yen its offer of 30-year Japanese government bonds during the current year ending March 2007, the Nihon Keizai Shimbun reported without citing sources.
The ministry is hoping to make a decision soon as it will risk higher interest payments if the bonds are issued after long-term interest rates rise, the business daily said.
The ministry sees pension funds and life insurance companies as prospective buyers of the fixed-rate long-term instruments, the newspaper said.
With long rates expected to rise, the ministry had already decided to issue more JGBs linked to the consumer price index, according to the report.
kiyori.ueno@xfn.com
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