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The Finance Ministry plans to issue 100 billion yen worth of bonds whose principal will vary depending on fluctuations in consumer prices, ministry officials said Friday.

The bonds, to be targeted at institutional investors, will be issued from January to March.

Under the plan, the 10-year JGBs will carry a fixed coupon, but the principal would fluctuate depending on changes in the consumer price index. A rise in prices would mean a boost in the principal as well as a corresponding increase in interest payments.

Calls had been growing among institutional investors for the issuance of such bonds, which would allow them to avert the risk of future inflation.