Major Japan life insurer to pile into domestic super-long bonds

Fukoku Mutual Life Insurance plans to invest in Japan’s super-long government bonds this fiscal year after their yields skyrocketed, and is considering shifting from foreign debt.

“Yields have risen to levels that align with our investment perspective, so we will proceed with bond re-balancing while actively increasing holdings,” said Junya Morizane, general manager of the insurer’s Investment Planning Department. “There is ample room to continue purchasing super-long bonds.”

The debt, the main investment for Japan’s life insurers, has seen wild swings along with its U.S. counterparts as the global trade war deepens. After a steep selloff drove the 20-year sovereign yield to its highest since 2004, super-long bonds rebounded this week as Bank of Japan Gov. Kazuo Ueda suggested a policy response to higher U.S. tariffs.