The yen declined and Japanese government bonds continued their losses, after a Reuters report stated that Tokyo does not intend to make a significant adjustment to the asset allocation of Japan’s Government Pension Investment Fund, which is valued at $1.8 trillion.

The Japanese currency fell to 162.3 yen per dollar, near its weakest levels in four decades, as interest rate differentials and financial concerns continue to pressure the yen and Japanese bonds.

Speculations had recently escalated about increasing the fund’s investments in domestic assets, following the finance minister's call for major pension funds to direct more funds to the Japanese market. However, any substantial change requires a formal review, given the fund’s independence and its commitment to achieving sustainable returns for beneficiaries.

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