German Industry Employment Falls to Lowest Level in a Decade 
Japan Signals Readiness to Intervene as USD/JPY Nears 161 Amid Yen Weakness 
Canada, British Columbia Launch $5 Billion Infrastructure Partnership to Boost Housing, Transit, and Healthcare 
Oil Prices Drop as U.S.-Iran Peace Deal Eases Supply Concerns 
Oil Prices Slide as U.S.-Iran Deal and Hormuz Reopening Ease Supply Concerns 
Dollar Hits One-Month High as Hawkish Fed Outlook Boosts Greenback 
Asian Stocks Rally as Japan and South Korea Reach Record Highs on US-Iran Peace Deal 
Japan Inflation Stays Below BOJ Target Despite Rate Hike and Rising Energy Cost Risks 
Oil Prices Steady as U.S.-Iran Truce Uncertainty and Middle East Tensions Keep Markets on Edge 
Asian Currencies Steady as Dollar Holds Firm Ahead of Fed Decision and US-Iran Deal Details 
Trump and Iran Sign Framework Peace Deal in France Amid Ongoing Middle East Tensions 
Gold Prices Rebound on U.S.-Iran Peace Deal Optimism Despite Fed Rate Hike Signals 
German Auto Suppliers Turn Bearish as Investment and Jobs Shift Overseas 
Yen Near 40-Year Lows Despite BOJ Rate Hike, Markets Brace for Possible Intervention 
Oil Prices Ease as Markets Weigh U.S.-Iran Peace Deal and Strait of Hormuz Reopening 
Dollar Surges After Fed Holds Rates Steady, Signals Potential Tightening Ahead 
Asian Stocks Surge as Oil Prices Fall and Strong US Dollar Weighs on Markets 
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.
