Japan set for bond issue of $110bn

Japan is to issue an extra Y10,800bn ($110bn) of government bonds this fiscal year to help it tackle its worst recession since the second world war.

The bonds will fund the bulk of the government's $154bn stimulus plan and will bring total new issuance for the fiscal year starting this month to a record Y44,100bn, a 33 per cent rise on last year.

This comes as governments around the globe are taking on record debt levels to bail out loss-making banks and bolster economies as they attempt to spend their way out of the downturn.

The US is expected to issue about $2,000bn in the fiscal year starting last October, more than double last year. The eurozone governments are set to raise €800bn ($1,050bn) this calendar year, 23 per cent up on 2008.

The UK government in today's annual Budget statement is expected to announce plans to issue £180bn ($270bn) in the 2009/10 financial year, a 25 per cent rise on last year's record levels.