Japan's 10-Year Bond Yield Falls 12.19bp to 2.76% on July 13 Amid GPIF Asset Reallocation Expectations

According to Yonhapinfomax, Japan's 10-year government bond yield fell 12.19 basis points to 2.7609% on July 13, driven by expectations of asset allocation changes by Japan's Government Pension Investment Fund (GPIF), the world's largest pension fund. The 30-year yield declined 29.2bp to 3.8929%, and the 5-year yield dropped 20.1bp to 1.9762%. The declines follow Finance Minister Katayama's statement on July 10 that the government would encourage pension funds including GPIF to expand investments in domestic Japanese financial assets. Currently, approximately half of GPIF's assets are invested overseas, raising expectations that a structural shift in its asset allocation could direct substantial capital inflows into Japanese markets.
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