Changes Regarding the Monthly Projections of the "Supply and Demands of Funds"

March 21, 2000
Bank of Japan
Financial Markets Department

The Bank of Japan has decided to revise the content of the monthly projections of the "Supply and Demands of Funds," currently released toward the end of the previous month, and to change the time of release of these data to the second business day of the month concerned.

1. Background

In the current format of the projections, the amount of issuance of government securities (bonds, treasury bills [TBs], and financing bills [FBs]), which is one of the major factors causing funds shortage in the money market, is not included in the calculation since the data regarding government securities issuance are not available at the time of compilation. Thus, it is somewhat difficult for market participants to accurately estimate the funds surplus/shortage for the next month only by analyzing the projections released by the Bank.

In addition, in recent months, seasonal patterns of funds surplus/shortage have differed substantially from what they used to be due to several factors, such as introduction of public auction for FB issuance. Against this background, the Bank has come to the conclusion that the projections should be disclosed in a more accurate and useful manner so that they can give sufficient information to market participants, and would enhance the efficiency of money market operations.

2. Changes

(1) Contents

In the new format, the projected amount of issuance of government securities will be included in the calculation.

(2) Time of release

The time of release will be changed to the second business day of the month concerned from a day toward the end of the previous month. This will allow the Bank to make more accurate projections.

The new format will start from the projections for April 2000, which are scheduled to be released on April 4.

For further information, contact
Open Market Operations Division, Financial Markets Department Mr. Atsushi Miyanoya (+81-3-3277-1234) or Mr. Jun Iwasaki (+81-3-3277-1284).