The Japanese government will launch a short-term floating-rate bond to help investors mitigate the risks of rising bond yields, according to Jinshi. This shows that policymakers are preparing for further interest rate hikes. The move is part of the government's efforts to ensure that it can sell bonds smoothly even if the Bank of Japan cuts its massive bond purchases and raises interest rates further to near zero. The floating rate will help reduce the losses that investors may suffer when the Bank of Japan raises interest rates, making the bonds an attractive investment tool for banks.
