The Finance Ministry is temporarily excluding Nomura Holdings from taking part in government debt auctions after the firm admitted to manipulating the bond futures market.

Nomura will be suspended from "special entitlements” of Japanese government bond dealers for a month from Tuesday, the ministry said in a statement on its website on Friday.

The action is another setback for Nomura after the revelations led several companies including Toyota Finance to take their bond underwriting business elsewhere. As one of the biggest players in government bond auctions, Nomura’s suspension will increase the burden on other bidders.