Japanese insurers sell net super-long bonds as domestic yields rise

Japan’s insurance companies reduce holdings of domestic “super-long” Japanese government bonds as market yields rise to multi-decade levels, according to separate reports. Bloomberg says insurers reverse direction from the start of the fiscal year by selling super-long government bonds in May, citing soaring yields. The Japan Times reports that local insurers sell net amounts of sovereign debt with maturities longer than 10 years, based on Japan Securities Dealers Association data. It says the net sales total ¥201.2 billion (about $1.25 billion). Together, the accounts indicate that insurers’ recent selling activity is tied to higher yields and reflects shifting demand for long-dated government paper. Both sources focus on sales of domestic super-long bonds rather than purchases or activity in other sectors, and they describe the timing as occurring in May during the current fiscal period.