Katayama Floats JGBs in Tax-Free Accounts, GPIF Portfolio Review

Japan’s finance minister has suggested including government bonds in a tax-free investment program for individuals, signaling a move to bolster domestic market liquidity. The nation’s massive pension fund, GPIF, hinted at possible adjustments to its portfolio to support this initiative. This comes amid a backdrop of a weakening yen, which has hit 40-year lows, prompting the government to seek ways to attract more capital into domestic markets. The proposal underscores the government's urgency to stabilize the economy and ensure financial stability amidst global economic uncertainties.