GPIF Could Buy $76 Billion in JGBs Within 31% Bond Cap, SocGen Says
Updated
Updated · Bloomberg · Jul 14
GPIF Could Buy $76 Billion in JGBs Within 31% Bond Cap, SocGen Says
2 articles · Updated · Bloomberg · Jul 14
Summary
¥12.3 trillion in potential JGB demand could emerge if Japan’s GPIF raises domestic bond holdings to 31% from 26.9%, Societe Generale said.
That estimate assumes the pension fund moves to the top of its existing domestic-bond allocation band rather than changing its benchmark portfolio mix.
Reuters reported Monday that Japan is not planning to revise GPIF’s benchmark allocations, but is exploring ways to encourage more domestic investment within the current framework.
The projection points to possible support for Japan’s government debt market from one of the world’s largest pension funds without a formal policy overhaul.