Japan wants to launch new products and incentives to boost bond demand using its $7 trillion household savings hoard and recent retail sales to address the central bank buying gap.

In 2010, the finance ministry established a mascot, Kokusai-sensei, or Professor JGB, to market the securities and later provided gold coins to special reconstruction bond buyers.

While mascots and bright metals faltered, greater yields attracted buyers this year. Retail JGB sales rose 30.5% to 5.28 trillion yen ($33.55 billion) in 2025, the most since 2007.

At a meeting with more than a dozen institutional investors in late November, the finance ministry was urged to increase retail buyer outreach, according to ministry minutes.

Prime Minister Sanae Takaichi’s reflationary policies raise concerns about the government’s borrowing and spending, making JGB investor diversification essential for market stability.

NUCB Business School professor Nana Otsuki, who attended the finance ministry’s investor meeting, said JGB household ownership might climb to 5%-6% if product design is updated.

“Having people hold government bonds would be a meaningful step forward as it could fuel a sense of responsibility among them over what the Takaichi administration calls responsible proactive fiscal policy,” stated.