Seeking Alpha

Japan pension fund "bombshell" expected this year

  • The Government Pension Investment Fund should announce a reshuffling of assets in which, predicts Nomura, it would sell as much as $200B in domestic bonds to buy overseas assets. The team at Nomura sees the move as weakening the yen about about 10%.
  • If done at the right time, says Mitsubishi UFJ's Daisaku Ueno, dollar-yen could top ¥110 this year (¥102 at the moment).
  • A Bloomberg survey sees the fund cutting its local bond holding from 60% to 40%, and boosting its targets for foreign stocks to 17% and 14% (from 12% and 11%, respectively).
  • The Nikkei closed 2.1% higher overnight.
  • ETFs: DXJ, EWJ, FXY, YCS, DFJ, JYN, NKY, DBJP, EZJ, EWV, YCL, SCJ, JPNL, DXJS, JSC, ITF, JPP, JPNS, HEWJ, FJP, DXJT, DXJH, DXJC, DXJR, DXJF
Comments (1)
  • DeepValueLover
    , contributor
    Comments (8688) | Send Message
     
    Who needs QE when you have ~$100 billion of Japanese buying of U.S. bonds?
    2 Jun, 09:03 AM Reply Like
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