Japan Post Cuts Local Bond Holdings to Just Over Half of Assets

Japan Post Holdings Co. sold about 24 trillion yen ($201 billion) of Japanese government bonds last fiscal year, following similar allocation changes taken by local pension funds.

The state-owned financial and postal company cut its JGB holdings to 154.9 trillion yen in the 12 months to March 31, from 178.9 trillion yen a year earlier, it said in a statement posted on its website Friday. The sovereign debt holdings accounted for 51.8 percent of its portfolio, while they made up 56.6 percent of those of its postal insurance arm, according to the statement.

The sales by Japan Post, which is preparing to go public, came as the Bank of Japan maintains its unprecedented bond-buying stimulus. Government Pension Investment Fund, the world’s largest manager of retirement cash, pledged in October to reduce its holdings of local debt by about half, and double foreign assets and domestic stocks.

Japan Post’s total assets increased to 290.8 trillion yen at the end of March, from 287.4 trillion yen a year ago, it said.

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