Let Bond Yields Rise, One Japanese Insurer's Call to BOJ
- ‘We are ready to return to JGBs at any time’: Fukoku’s Watabe
- Fukoku is seeking 20 basis point increase in 20-year yields
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Fukoku Mutual Life Insurance has some advice for the Bank of Japan: allow longer-maturity bond yields to rise as insurers will be there to buy once they reach attractive levels.
A yield of 1 percent for 30-year bonds would bring out strong latent demand from local life insurers, thereby preventing it from spiking higher, according to Takehiko Watabe, executive officer at Fukoku, which oversaw the equivalent of $60 billion as of June. Insurers watch 30-year yields closely to match their long-term liabilities.