TOKYO -- Two major Japanese life insurers are planning to reduce their U.S. Treasury holdings in favor of Japanese government bonds in fiscal 2023 as they grow wary of high currency hedging costs and the risk of a stronger yen.
Dai-ichi Life Insurance plans to cut its holdings of currency-hedged Treasurys, and Nippon Life Insurance also plans a more cautious approach to unhedged foreign debt. This comes amid a broad trend in Japan's life insurance industry toward buying more JGBs, anticipating a change in policy by the BOJ.
