• Kyodo


Three of four major life insurers may buy more foreign bonds in fiscal 2014 ending next March to seek higher returns because yields on Japanese government bond yields are predicted to stay at rock bottom, their asset management plans showed Friday.

Life insurers are basically willing to buy safe-haven JGBs, but expectations are growing that the prices are unlikely to rise further because of the Bank of Japan’s massive debt purchases — part of the prime minister’s deflation-busting “Abenomics” strategy. This is prodding them to boost holdings of foreign bonds. Long-term interest rates move inversely to bond prices.

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