Global Treasury officials will be hoping Japan’s life insurers rediscover some enthusiasm for overseas bonds in their upcoming investment plans, after purchases fell to a seven-year low in the first half of the fiscal year.
Net purchases of medium- to long-term foreign bonds by insurers were just ¥266 billion ($2.5 billion), the lowest for an April to September period since 2013, according to data from the Finance Ministry. They were net sellers for three months through September.
A collapse in sovereign bond yields after central banks slashed rates everywhere has made it more challenging than ever for the insurers to get returns on some $3.7 trillion worth of assets.