Fukoku Mutual Life Insurance plans to invest in Japan¡¯s superlong government bonds this fiscal year after their yields skyrocketed, and is considering shifting from foreign debt.
¡°Yields have risen to levels that align with our investment perspective, so we will proceed with bond re-balancing while actively increasing holdings,¡± said Junya Morizane, general manager of the insurer¡¯s Investment Planning Department. ¡°There is ample room to continue purchasing superlong bonds.¡±
The debt, the main investment for Japan¡¯s life insurers, has seen wild swings along with its U.S. counterparts as the global trade war deepens. After a steep selloff drove the 20-year sovereign yield to its highest since 2004, superlong bonds rebounded this week as Bank of Japan Gov. Kazuo Ueda suggested a policy response to higher U.S. tariffs.
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