Japan Post Insurance says it plans to boost foreign debt holdings in fiscal year 2019-20

Author: Justin Low | Category: News

Japan Post Insurance holds about ¥74.5 trillion in total assets

The insurer is still seen refraining from buying Treasuries due to high dollar hedging costs - something I mentioned about last year and this year - but says that it is looking to increase holdings of hedged foreign debt, mainly US corporate bonds.

They are also considering investment in euro-denominated bonds but mention that it is "hard to generate high returns from them". Much like last year, the firm will be reducing its share of yen bonds in the current fiscal year and will only "seriously consider" buying when 30-year JGB yields rise to around 1%.

In other words, this is another major corporation that is slowly moving its money to other markets - mainly the US - and away from its own domestic market in Japan. Basically, they're saying to the BOJ: You can build your own palace with JGBs and ETFs, we want nothing to do with it.

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