By Miho Uranaka and Anton Bridge

TOKYO (Reuters) - Japan’s Bridgestone has more than halved the value of a planned bond offering to around 50 billion yen ($350.56 million), two sources with knowledge of the matter said.

The company has also decided to do away with the proposed 7-year term in the bond offer series that also included other tenors, the sources added.

Underwriters are still testing demand for the issuance, said the sources, who declined to be named as the information is not public.

Bridgestone declined to comment on the deal.

The sale by the tyre maker, which has an investment grade credit rating, is seen as a litmus test for market sentiment. While the offer value is lower than hoped, there are signs that the corporate bond market is stabilising, market players say.

Across Asia, bond issuance has been muted in the past week since President Donald Trump’s tariffs sparked ructions in the U.S Treasuries market, making issuance more expensive across investment grade and high-yield bonds.

Japanese corporate bonds remain popular among retail investors. A 600 billion yen offering from SoftBank (TYO: 9984 ) Group has attracted healthy retail demand and some brokerages have already sold out their pre-orders, a SoftBank spokesperson said. The bond will be priced on Friday with a coupon rate of between 3% and 3.6%, SoftBank’s filings showed.

The decision by SoftBank to proceed with its bond offering comes against the backdrop of market volatility that has upended deals in other countries.

While some Japanese companies have postponed planned issuances, others have won over investors by offering wider spreads to compensate for the current uncertainty and settling for lower fundraising amounts, market players say. All the same, since the announcement of the U.S. tariffs at the start of April, more than 10 firms have postponed or cancelled bond offerings, two sources with knowledge of the matter said.

Between 700 billion yen and 800 billion yen ($4.9 billion - $5.6 billion) - making up roughly half the total - of offerings intended for April have been postponed or cancelled so far, said Masahiro Koide, joint head of the capital markets division at Mizuho Securities.

($1 = 142.6300 yen)