Japanese insurers eyeing US bonds again

US bonds are becoming attractive with yields nearing 2%, insurers say.

Japanese insurers are looking to buy US bonds again after a record selling spree, as US Treasuries’ yields have recovered close to comfort levels, reports Reuters.

Executives at Japan’s top four insurers, which manage more than $1.6t in assets, said that US bonds were becoming attractive assets, with yields now nearing 2%.

A return of long-term investors could help stabilise a market facing pressure from upbeat economic sentiment and concerns about inflation.

Japanese life insurers have been selling foreign bonds for eight months since July, their longest net-selling streak since the Ministry of Finance started compiling the data in 2005. Most had shifted their focus to domestic bonds.

US dollar assets account for almost two-thirds of the top four Japanese insurers’ foreign currency holdings. They allocate 40-50% of funds to domestic bonds and 18-30% to foreign bonds.

Here's more from Reuters.