Some Japan Life Insurers to Resume Investments in Superlong JGBs


Tokyo, Oct. 27 (Jiji Press)--Some major Japanese life insurers plan to resume investments in Japanese government bonds with life of 20 years or longer until maturity in the second half of fiscal 2018, following a recent rise, albeit moderate, in long-term interest rates in the country.

Long-term interest rates went up after the Bank of Japan decided in late July to tolerate increases in such rates to some extent, in an adjustment of its ultraeasy monetary policy.

Before the policy adjustment, long-term rates had remained at rock-bottom levels, and life insurance companies, which are major institutional investors, had refrained from making active investments in superlong JGBs.

Yields on 30-year JGBs are currently moving around 0.9 pct, still lower than 0.1 pct, a level targeted by many life insurers.

But an official of Nippon Life Insurance Co. said that recent rises in long-term interest rates are "making it easier than before to invest" in JGBs with long life until maturity.

[Copyright The Jiji Press, Ltd.]

Jiji Press