Updated
Updated · Bloomberg · Jul 10
Japan Urges ¥293.6 Trillion GPIF to Buy Domestic Assets as Yen and Bonds Gain
Updated
Updated · Bloomberg · Jul 10

Japan Urges ¥293.6 Trillion GPIF to Buy Domestic Assets as Yen and Bonds Gain

3 articles · Updated · Bloomberg · Jul 10

Summary

  • Japanese bonds and the yen rose after Finance Minister Satsuki Katayama said pension funds should increase investment in domestic financial assets.
  • Katayama explicitly included the Government Pension Investment Fund, whose ¥293.6 trillion ($1.81 trillion) portfolio makes it one of the world's largest pension investors.
  • The call targeted support for home markets from levels near multi-decade lows, with the government also urging households to channel more money into Japanese assets.
  • The move signals a policy push to mobilize domestic savings to stabilize Japan's currency and bond market rather than relying solely on overseas capital.

Insights

Tokyo urges investing at home while its policies push savers abroad. Can this contradictory strategy actually save the yen?
Could Japan's battle against its weak yen trigger the unwind of an $11 trillion carry trade, sparking a financial crisis?