Analyst: GPIF may consider increasing the proportion of domestic bond allocation

The yield of Japanese treasury bond soared, and analysts believe that it is reasonable for the Japanese Government Pension Investment Fund (GPIF) to increase the allocation ratio of domestic bonds. GPIF's current domestic bond allocation target is 25%, with assets under management of approximately 318 trillion yen (approximately 2 trillion US dollars) as of the end of June. Koji Okuda, Executive Researcher at the First Life Economics Research Institute, stated that adjusting the allocation ratio by 1 percentage point corresponds to a capital flow of over 3 trillion yen. Therefore, increasing the domestic bond allocation ratio to 30% to 35% is worth considering. (Golden Ten)