Yen Poses Dilemma for Japan Investor Keen to Buy Treasuries
- MUFJ Kokusai’s Ishigane looks to increase Treasury holdings
- Authorities issue strongest warning to date on currency’s drop
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For Kiyoshi Ishigane, the yen’s descent to a 24-year low couldn’t have come at a worse time.
The chief fund manager of Mitsubishi UFJ Kokusai Asset Management Co. is looking to increase his holdings of US government bonds from an underweight position. But the weak Japanese currency and a 10-fold surge in hedging costs since the start of the year are making it more expensive to do so.