Japan’s Fukoku Mutual shifts to superlong government bonds

Fukoku Mutual Life Insurance plans to increase its holdings of Japan’s superlong government bonds this fiscal year, taking advantage of elevated yields, while weighing a shift away from foreign debt. The insurer said bond yields have reached levels that support its investment strategy, prompting a rebalancing of its portfolio. Japanese life insurers, major buyers of superlong debt, have faced volatility in the bond market amid global economic tensions, including a trade dispute between the United States and China. Yields on the 20-year sovereign bond surged to a peak not seen since 2004 following a sharp sell-off, before recovering this week after comments from the Bank of Japan governor signaled potential policy action in response to rising US tariffs.