Treasuries’ Biggest Foreign Buyers to Return on Weakening Yen
- Japanese investors look primed to boost purchases of U.S. debt
- Life insurers to disclose investment plans for fiscal year
Pedestrians and traffic pass the Bank of Japan headquarters in Tokyo, Japan.
Photographer: Kiyoshi Ota/BloombergThis article is for subscribers only.
Japan’s giant investors look set to bet on yen weakness continuing and boost their purchases of Treasuries over the rest of the year.
That’s the view of money managers in Tokyo, who see conservative buyers like life insurers helping the country reaffirm its position as the biggest foreign holder of Treasuries after heavy selling in recent months. While yields on Japanese government bonds have climbed -- to six-year highs -- the premium offered by their U.S. counterparts has surged even more as monetary policy in the two economies diverges.