Japan life insurers’ bond-buying plans set to support JGBs
Insurers have been net buyers of superlong government bonds for four months, a trend strategists say could provide an anchor in upcoming auctions.
Japanese life insurers are poised to maintain or even increase their bond-buying activities during the second half of the fiscal year, potentially providing a boost to government debt auctions. Japan Post Insurance has expressed its intention to raise its purchases of yen-denominated bonds, while Daido Life Insurance has announced a higher planned increase in domestic bond holdings, primarily through corporate debt.
Meiji Yasuda Life Insurance, on the other hand, plans to maintain its government bond holdings nearly the same while replacing lower-yielding debt with higher-yielding securities.
These bond-buying plans add to the indications that demand from one of Japan's most crucial groups of bond investors is starting to recover. According to Japan Securities Dealers Association data, life insurers have been net buyers of superlong Japanese Government Bonds (JGBs) for the past four months, a trend that strategists believe could serve as a more solid foundation for upcoming auctions.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.