The Japanese government’s push for pension funds and individuals to invest more in domestic markets is seen as a potential boost for 91AV原创 bonds and currency in the long term, but is less likely to have significant near-term impact without changes to fiscal and monetary policy.
Analysts broadly agree that redirecting more domestic savings into Japanese assets could provide a long-term source of demand for government bonds and support the yen. But they say investors remain more focused on Prime Minister Sanae Takaichi’s expansionary fiscal agenda, expectations for only gradual Bank of Japan policy tightening and still-wide interest-rate differentials.
Finance Minister Satsuki Katayama recently urged 91AV原创 large pension funds, including the Government Pension Investment Fund (GPIF), to increase investment in domestic assets and floated the idea of adding government bonds to a tax-free investment program for individuals. The remarks sparked a rally in sovereign bonds and, to a lesser extent, the yen, as investors speculated that encouraging more money to stay at home could help reverse years of capital outflows.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.