The government is set to sell long-term bonds exclusively to individual investors beginning in March -- the first time it will have issued such debt in Japan. On Feb. 3, it started accepting subscriptions at private financial institutions and post offices. Subscriptions for the first week reportedly exceeded quotas at some places, indicating a strong demand for government bonds.

Such bonds can be a double-edged sword, however. On the one hand, they offer individual investors a new investment opportunity at a time of zero-percent interest rates. Moreover, bondholders will become more concerned about public administration and finance. On the other hand, the government runs the risk of dipping more deeply into the huge reserve of personal savings to finance its ballooning deficits.

These bonds, available in units of 10,000 yen, can easily be purchased by anyone. They may be especially attractive to wealthy individuals because no limit is set on the amount that one person can purchase. Risks, if any, will be minimal, because the interest rate will be adjusted regularly in accordance with market rates. Transactions have been simplified, and can be made through bank accounts.