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