Japan’s Government Pension Investment Fund, the world’s largest pool of retirement savings, cut domestic bond holdings to the least since the fund’s inception in 2006 and said it will invest in infrastructure.
Japanese bonds rose, completing their biggest rally in 11 months, on speculation the yen’s strength will prompt the central bank to expand debt purchases.
Japan’s bond futures fell the most in seven weeks as equity gains and yields near a six-month low damped demand for government debt.
Japan’s bonds rose for the first time in six days as demand increased at an auction of 20-year securities and stocks slumped.
Japan’s 20-year bonds rose after an auction of the securities attracted more demand than traders forecast and gains in the yen dimmed the outlook for exporters.
Japanese bonds dropped as damage from the nation’s biggest earthquake on record fueled speculation the government will increase debt sales to fund recovery efforts.
Japan’s bonds rose, halting a two- day drop, after Prime Minister Naoto Kan said the situation at a radiation-leaking nuclear plant is unpredictable, supporting demand for the relative safety of debt.
Japan’s bonds fell for a second day as domestic shares reversed an early decline, damping demand for the relative safety of government debt.
Japanese bonds rose, pushing 10-year yields to the lowest level in seven years, on speculation the strengthening yen will add pressure on the central bank to ease monetary policy further.
Japanese government bonds fell, pushing five-year yields up by the most in more than two years, as a rally in stocks and signs the global economy is improving sapped demand for government debt.
"The results were within expectations and did not move the JGB market or the dollar-yen."
- Keiko Onogi on Feb 28, 2014