SocGen Sees $76 Billion of JGB Buying If GPIF Rebalances Assets

Japan’s GPIF has capacity to buy up to ¥12.3 trillion ($76B) of additional government bonds without altering its asset allocation mix, per Societe Generale. This suggests incremental bid support for the JGB market and potential easing of near-term supply/demand pressure in sovereign credit.

Analysis

Japan’s GPIF has capacity to buy up to ¥12.3 trillion ($76B) of additional government bonds without altering its asset allocation mix, per Societe Generale. This suggests incremental bid support for the JGB market and potential easing of near-term supply/demand pressure in sovereign credit.