Key facts
- Meiji Yasuda Life Insurance will double its planned Japanese government bond (JGB) purchases for fiscal 2026.
- The insurer's JGB purchases will exceed 2 trillion yen ($12.3 billion).
- The company considers current 30-year JGB yields of approximately 4% to be a "perfect buying opportunity."
- Meiji Yasuda will fund these increased purchases by selling lower-yield JGBs acquired previously.
Meiji Yasuda Life Insurance is significantly increasing its investment in Japanese government bonds (JGBs), planning to double its purchases for fiscal year 2026 to over 2 trillion yen ($12.3 billion). The insurer's asset management head, Kensho Motowaki, described current yields of around 4% for 30-year JGBs as a "perfect buying opportunity," suggesting a belief that ultralong-bond yields may stabilize after months of volatility.
To finance this expanded purchasing plan, Meiji Yasuda intends to sell off lower-yielding JGBs that it had acquired in the past. This strategic move indicates a shift in the company's fixed-income investment strategy, likely driven by expectations of future interest rate movements or a desire to capture higher current yields.