Japan’s JGB Fails: An Insight into the Financial Landscape

Japan’s financial market witnessed notable developments in the past few years, particularly in the government bond sector. Here’s a comprehensive overview of the JGB (Japanese Government Bonds) market for the years 2020 to 2023, with a focus on the year 2022 and the recent data from August 2023.


  • Japan’s government bonds remained stable in 2020, with minimal fails reported in the market.


  • The year 2021 also showed a relatively smooth operation of the JGB market, with limited disruptions.


  • August 2022: However, by August 2022, concerns emerged as the number of fails in JGB transactions increased. A total of 294 failed transactions were recorded, amounting to 9,789 million yen. The average fail period was 1.17 business days, indicating a swift resolution process.
  • September 2022: The situation escalated in September 2022, with 242 fails reported, totaling 8,823 million yen. The average fail period extended slightly to 1.62 business days.
  • October 2022: October saw 401 fails amounting to 11,065 million yen, with the average fail period at 1.80 business days.
  • November 2022: In November, there was a temporary improvement, with no reported fails.
  • December 2022: The year ended with no reported fails in December, providing a respite.

2023 (January to August):

  • January to August 2023: The start of 2023 witnessed fluctuations in the JGB market. The fails in January amounted to 612, totaling 16,109 million yen, with an average fail period of 1.74 business days. However, the fails showed a declining trend in the following months.
  • August 2023: In August 2023, the market recorded 548 fails, amounting to 10,101 million yen, with an average fail period of 2.94 business days.

Key Terms Defined:

  • Fail: A fail occurs when a recipient in a JGB transaction does not receive the JGBs from the delivering party on the scheduled settlement date.
  • Buy-In: A buy-in is a procedure for settling a failed transaction, involving the purchase of the same or equivalent securities at market price, or by designated entities, such as the JSCC, as per regulations.

These figures, collected from the “Survey on Fails,” offer insights into the stability of Japan’s government bond market. It’s important to note that these statistics reflect the health of the market, as fails can disrupt financial operations.

The data suggests that Japan’s JGB market experienced periods of disruption, particularly in 2022, but efforts to resolve fails have been relatively efficient.

Source: Bank of Japan (BOJ) – Financial Markets Department

Note: All figures are in 100 million yen unless stated otherwise.