Japan Post Bank to expand JGB investment in light of BOJ taper plan
20/06/2024 08:05
By Takahiko Wada
TOKYO, June 20 (Reuters) - Japan Post Bank said on
Thursday it will expand investment into long-term government
bonds to take advantage of rising yields from the central bank's
expected tapering of its huge bond purchases.
The investment appetite by Japan Post Bank 7182.T , which
has total assets of $1.5 trillion, may help keep long-term
interest rates low, even as the Bank of Japan (BOJ) begins to
trim bond purchases under a plan set for release next month.
"We have already begun shifting investment towards
government bonds from deposits in light of shifting trend in
Japan's interest rates," a public relations official at Japan
Post Bank said.
"We plan to keep expanding investment mainly into long-term
Japanese government bonds (JGB)," or notes with 7-10 years of
maturity, taking into account the size of the BOJ's future bond
buying taper and the market fallout, the official said.
The remarks came in response to a query by Reuters on how
the BOJ's quantitative tightening (QT) plan, due out next month,
could affect Japan Post Bank's investment strategy.
As one of the country's biggest market players, Japan Post
Bank yields huge influence in the JGB market.
It has ramped up investment in JGBs with the balance of
holdings totaling 5.15 trilion yen ($32.56 billion) as of March,
expanding 1.5-fold from levels in December last year.
($1 = 158.1700 yen)
(Reporting by Takahiko Wada, writing by Leika Kihara; Editing
by Michael Perry)
((leika.kihara@thomsonreuters.com; +813-6441-1828; Reuters
Messaging: leika.kihara.reuters.com@reuters.net))