Nikkie with the report:

  • Japanese life insurance companies plan deeper cuts to holdings of U.S. government bonds as the cost of protecting against the risk of a weak yen outpaces gains from higher interest rates.
  • In investment plans released by Tuesday, seven out of 10 major insurers said they would cut holdings of foreign debt, mainly U.S. Treasury bonds, in the second half of the fiscal year ending March.

Link here for more (may be gated)

Selling USTs, if the $$$ are brought back to Japan, would be JPY -supportive. Would also send US yields higher, at the margin.

ps. BOJ meeting is this week: