Japan's top insurers will reduce JGB holdings

Japan's four largest life insurers are planning to reduce or maintain their holdings of Japanese government bonds (JGBs). This shift could impact the market for these bonds. Barclays analysts noted the insurers' plans, stemming from a Nikkei report. While some find super-long bonds attractive, aggressive buying is unlikely. They are cautious about rising yields and have mostly completed asset-liability matching. The insurers' strategies vary, with some focusing on 30-year bonds, while others consider 20- and 30-year maturities. One insurer is even exploring 40-year bonds.