Meiji Yasuda Life Insurance plans to avoid actively investing in Japanese superlong-term government bonds for the next one to two years as interest rates may rise and supply pressures build.
Fiscal expansion concerns propelled Japanese government bond yields on Monday ahead of the Upper House election later this month, adding further momentum to a rise stoked by a view that inflation is quicker than the central bank’s expectations.
"The Bank of Japan will continue to raise interest rates,” Kenichiro Kitamura, Meiji Yasuda's operating officer and general manager of investment planning and research department, said in an interview last week, while predicting that 30-year bond yields, currently at just below 3%, could rise to 3.2% to 3.3% by fiscal 2026.
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