In Japan, the proposed bill on establishing an independent agency to replace the Government Housing Loan Corp. is expected to pass during the current session of the DIET (Japan's legislature).

In a related development, GHLC completed its first MBS of 2005 and 27th in total at the end of January. The 30 billion ($283.5 million) offering, which has a 10.24-year expected average life and legal final of 35 years, priced at 1.72%, around 36 basis points over government bonds. The spreads were five basis points outside GHLC's previous issue. Analysts attributed this directly to GHLC's increased MBS issuance plans in 2005, with investors demanding a better pick up going forward.

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