Nippon Life Is Steadily Buying 30-Year Japanese Government Bonds
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 24 2024
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Source: Bloomberg
- Nippon Life Insurance Co. Plans: Nippon Life Insurance Co. plans to buy super-long Japanese government bonds and will accelerate purchases when the 30-year yield rises significantly above 2%.
- Current Purchases: The company is steadily buying 30-year securities as they become attractive, according to an executive officer.
- Yield Trends: Yields on Japan’s 30-year sovereign bonds rose to 1.95% on Wednesday, up from about 1.82% at the start of April and 1.63% at the beginning of the year.
- Investment Strategy: Nippon Life boosted holdings of domestic bonds by ¥710 billion ($4.6 billion) in the last financial year and expects to add a similar amount this year.
- Bank of Japan's Interest Rate: Nippon Life sees the Bank of Japan raising the key interest rate to 0.25% in the October-December period, following the central bank's first rate hike since 2007 in March.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
