What started as a plan to reduce the national debt is turning into a reason to issue more bonds.
Prime Minister Shinzo Abe's administration implemented a higher consumption tax in April to boost revenue as government liabilities ballooned to ¥1 quadrillion ($8.5 trillion), more than double the nation's yearly economic output.
Consumption plunged and the economy fell into a recession, prompting companies including Mirae Asset Global Investments Co. and High Frequency Economics to predict even more sovereign debt sales to revive growth.