Bonds set to rise as expectations persist for GPIF to boost domestic investment

Bloomberg··Read original
3▲0 ▼1Impact / 5
Summary · why it matters

The bond market is expected to rise on the 13th. Buying that emerged late last week is set to continue after Finance Minister Satsuki Katayama made remarks encouraging pension funds, including the Government Pension Investment Fund, to increase investment in domestic financial assets. Keisuke Tsuruta of Mitsubishi UFJ Morgan Stanley Securities noted that while the aftereffects of buying could keep the market rising, the fundamental issues driving higher yields—such as pressure on the Bank of Japan and concerns over fiscal expansion—remain unresolved, so the buying may not last long. He also indicated that the feasibility of GPIF increasing domestic asset investment needs careful assessment, as it may be limited to an expansion of alternative investments that had already been discussed, rather than a portfolio change. In overnight futures trading, the lead September contract closed at 127.63 yen, up 31 sen from the 10th settlement, and the yield on newly issued 10-year bonds is expected to trade in a range of 2.73 percent to 2.76 percent. In the foreign exchange market, the yen is hovering around 162 to the dollar, a weak level, with safe-haven dollar buying dominating amid retaliatory strikes between the United States and Iran. Marito Ueda, president of SBI FX Trade, said that overseas players' reactions have been limited and they have not been able to push the dollar's downside aggressively, adding that the push for pension funds to invest domestically may be a desperate measure because intervention is not possible, and with no concrete steps in sight, the market is waiting for the next development. Yujiro Goto of Nomura Securities pointed out that this week, the focus will again be on the actions of Japanese authorities, including intervention, and the situation in the Middle East, and that the dollar-yen pair is likely to remain stuck around 162.

Impact on assets 2

Financials▲ · 1 stocks
Others▼ · 1 stocks
💱US Dollar/Japanese Yen FX Spot Rate
USDJPY
▼ NegativeMonetaryrelevance

Finance Minister encourages pension funds to invest domestically, potentially reducing yen selling pressure, but yen remains weak amid safe-haven dollar buying and unresolved fundamental issues.

Off-coverage companies 1

SBI FX TradePrivate± Mixed
relevance

SBI FX Trade president comments on market reaction to pension fund push and intervention prospects, but no direct impact on the company's business.

© 2026 MarketIVNews