Large Japan life insurance company CI0 out with strategy report 2 Feb
- likely to reduce domestic bonds but ready to buy super-long JGBs when yields above 1%
- expects 10-year US trsys to stay in 2.5-3.0% range
- ccys may fluctuate on Trump's comments but can not ignore economic fundamentals for a long time
- NL may increase infrastructure investment as opportunities likely to rise under Trump
- interested in buying debt of non-energy US infrastructure projects
- NL unrealised gains at end-Dec around JPY 10trln, unch vs June
On the face of it the preference for EU bonds would be EURJPY supportive but this is only one part of a very big playing-field.
EURJPY currently 121.48 near session lows as USDJPY drops further to 112.32
