Japan’s Ministry of Finance has projected a notable increase in government bond issuance by fiscal year 2029. According to Jin10, the rise is largely driven by higher debt servicing and issuance costs as financial conditions tighten.
Under the current outlook, total bond issuance could reach approximately 38 trillion yen by 2029, representing a 28 percent increase compared to fiscal year 2026. This projection reflects the mounting fiscal pressure Japan faces as borrowing becomes more expensive and debt management challenges intensify.
The expected increase underscores the broader impact of rising funding costs on public finances, especially for highly indebted economies like Japan.