Could the Whale Cause a Bond Tsunami?: Japan Credit

Japan’s pension “whale” may be on the move.

Data indicate the $1.1 trillion Government Pension Investment Fund is selling local bonds and buying domestic stocks and overseas assets. Trust banks, which manage retirement money including those of GPIF, sold a net 1.05 trillion yen ($8.9 billion) in Japanese notes in December, the first reduction on record dating back to 2004, the Japan Securities Dealers Association says. The 10-year sovereign yield more than doubled to 0.45 percent from a record low 0.195 percent last month.