Japanese Government Bonds (JGBs) are available with various maturity periods.

Treasury Discount Bills

Short-term JGBs (6-month and 1-year treasury bills) are all discount bonds, meaning that they are issued at a price lower than the face value. No interest payments are made, but at maturity the principal amounts are redeemed at face value.

JGBs

Medium-term (2-year and 5-year bonds), long-term (10-year bonds), super long-term (15-year floating-rate, 20-year, 30-year and 40-year bonds) and JGBs for retail investors (5-year and 10-year bonds) have fixed-rate coupons which are determined at the time of issuance and are paid on a semi-annual basis until the security matures and the principal is redeemed at face value. The 15-year floating-rate bonds and the JGBs for retail investors (10-year) feature a coupon rate that varies according to certain rules. The Japanese municipal bond market in 2007 has grown to JPY 200 trillion (USD 1.67 trillion) on a balance basis according to research by Mizuho Securities Co. Ltd. Meanwhile, inflation-indexed bonds are securities that link the principal amount to the consumer price index (CPI). Although their coupon rate is fixed, the interest payment fluctuates.

JGBs are divided into three categories based upon their respective legal framework: (i) general bonds, (ii) fiscal investment and loan program (FILP) bonds, and (iii) other JGBs.

General bonds comprise new financial resource bonds, such as construction and debt financing bonds, and refunding bonds.

FILP bonds are government-issued bonds used to raise funds for the investment of the Fiscal Loan Fund. These bonds are issued against the credit of the Government and the maximum issuance amount requires Diet Approval (Article 62[2] of the Act on Special Accounts).

Other JGBs include subsidy bonds, subscription/contribution bonds, and government bonds converted from Japan National Oil bonds. Subsidy bonds are government securities issued in place of a provision of cash, and therefore do not generate revenues. They are currently issued in lieu of condolence money and other cash compensation to the bereaved families of war dead, those who suffered physical or spiritual damage during the Second World War II, and those repatriated after the war. Subscription/contribution bonds are subsidy bonds that are issued to pay the subscription or contribution in whole or in part to international institutions, in lieu of the amount to be paid in the currency. These securities are non-interest bearing, nontransferable, and payable on demand. Therefore, whenever the institution concerned needs the currency and requests for encashment, the cash should be paid to the institution. With respect to the government bonds converted from Japan National Oil bonds, it is pursuant to Article 10(2) and 12(2) of supplementary provisions to the law concerning the abolishment of the Japan National Oil Law and the Metal Mining Agency of Japan Law.

Corporate bonds may be straight, asset-backed, convertible, samurai or bank debentures.  The share of bank debentures and asset-backed securities as a portion of Japan's total bonds outstanding has remained at about 3% since 2005.