Estimates from Japan's Ministry of Finance indicate that the nation's government bond issuance could increase by 28% over the next three years, primarily due to rising debt financing costs.

According to the projections, for the fiscal year commencing in April 2029, Japan may need to issue up to 38 trillion yen in government bonds. This figure significantly exceeds the 29.6 trillion yen planned for issuance in the 2026 fiscal year.

Furthermore, the principal and interest payments due on government bonds in the 2029 fiscal year are expected to rise to 40.3 trillion yen. This is an increase from the 31.3 trillion yen estimated for the 2026 fiscal year and would account for approximately 30% of total government expenditure.