Japanese government bonds could get a boost from retail investors

Japan's 10-year government bond approached 3% recently, and the government would like to make sure the market for the debt is attractive to individuals. | JIJI

Aug 27, 2026

Tax incentives might be introduced to encourage individual investors to buy more government bonds, and this could dramatically change how personal wealth in Japan is held.

“Depending on the measures, the move might trigger a major shift of household assets from bank deposits into government bonds,” wrote Tsuyoshi Ueno, executive research fellow at NLI Research Institute, in a report released earlier this month.

Inheritance tax breaks have been floated, and the Democratic Party for the People (DPP) is calling for government bonds to be included as an investment option for NISA tax-free investment accounts.

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