Japan Inc. Sells Record $13.4 Billion of Bonds for Month of May

The current month is proving to be the strongest May on record for Japanese corporate issuance, with borrowers taking advantage of a drop in yen spreads after the Bank of Japan recently maintained its negative interest-rate policy.

(Bloomberg) — The current month is proving to be the strongest May on record for Japanese corporate issuance, with borrowers taking advantage of a drop in yen spreads after the Bank of Japan recently maintained its negative interest-rate policy.

Mitsui Fudosan Co. and SBI Holdings Inc. on Wednesday became the latest issuers to price yen bonds, taking the monthly tally to 1.87 trillion yen ($13.4 billion). That’s the largest-ever amount for the month, according to data compiled by Bloomberg stretching back to 1999.

The brisk sales come against the backdrop of a drop in spreads after new BOJ Governor Kazuo Ueda retained the central bank’s main stimulus measures at his first policy meeting at the helm in April.

Yield premiums on the yen-denominated notes have dropped 4.5 basis points from an almost three-year high in March, a Bloomberg index shows. Tightening to 63 basis points this week, they are at their lowest since January, the data show.

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