Japan’s largest insurer may rejig its portfolio in favor of domestic bonds after a policy move by the central bank bolstered the debt’s appeal.

Nippon Life Insurance is considering buying more Japanese bonds as yields have climbed to relatively attractive levels, said Akira Tsuzuki, senior general manager of investment planning at the firm. Benchmark 10-year sovereign yields have almost doubled to 0.48% after policymakers raised the cap to 0.50% on Tuesday.

"It will take a bit more time for markets to digest the BOJ’s move and to figure out how far interest rates will rise,” Tsuzuki said in an interview. "But in terms of yield levels, 1.5% on 30-year bonds is more investable than the past few years. If it is rising to 1.5% to 2.0%, that will be quite a favorable environment.”