In 2011, Japan¡¯s Ministry of Finance unveiled Kokusai-sensei, a mascot whose smiling face is made from the first kanji character in the Japanese word for government bonds. Everything has a mascot in this country, and this was designed to drum up retail interest in sovereign debt, which then yielded a meager 0.5%.
He was later joined by a female counterpart, Koko-chan, and even a real-life pop idol. But they all failed: Households¡¯ share of the JGB market continues to languish at less than 2%, versus around 9% for U.S. Treasuries.
Now Japan has a far more capable figure trying to drum up interest and bring money back: Finance Minister Satsuki Katayama. Since her recent mic-drop moment, when she announced vague plans this month to encourage the country¡¯s massive pension funds to put more money to work at home and reduce their overseas exposure, she¡¯s doubled down.
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