Japan lays groundwork to sell shorter debt

TOKYO — Japan must create an environment where government bonds remain an attractive investment for financial institutions, such as by issuing shorter-duration debt, a finance ministry panel is likely to say in a draft proposal reviewed by Reuters.

The proposal highlights how the Bank of Japan's (BoJ) exit in March from its radical stimulus is prodding the government to prepare for an era of rising interest rates, which will increase the cost of funding the country's huge public debt.