Yield Outlook Makes Japan’s Life Insurers Go Slow on JGBs

The likelihood of further interest rate hikes in Japan is keeping many of its life insurers from actively purchasing the nation’s government bonds this year.

Five of 10 large insurers that outlined investment plans this month forecast that Japan’s 10-year bond yield may climb by another half of a percentage point to 3%, to a three-decade high, adding to the case to wait more before boosting holdings.