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Bonds

Japan life insurers set to buy more ultralong bonds on BOJ policy shift

Closely watched JGB investors have plenty of firepower for purchases

The Bank of Japan's Tokyo headquarters. The BOJ has made its yield curve control more flexible. (Photo by Konosuke Urata)

TOKYO -- Japan's big life insurance companies are poised to buy more ultra long-term Japanese government bonds, emboldened by the Bank of Japan's move to relax its hold on the high end of the yield curve.

Seven out of nine leading life insurers told Nikkei the BOJ's policy adjustment, which allows 10-year JGB yields to rise above 0.5%, is a positive factor for buying ultralong government debt.

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