Taking account of such a situation and after thorough discussion with the parties concerned, the Bank of Japan reached an agreement with the Ministry of Finance in December 1998 to change FB issuance to, in principle, a public auction system. It was implemented in April 1999.
Subsequent development of the FB market has been greatly contributing to daily money market operations and the conduct of monetary policy as expected. At present, FBs also play an important role in meeting investor needs for safe and liquid assets.