Allianz Chief Economist: If Japanese portfolios shift, the reduction of overseas assets will become the focus of global markets
According to Golden Ten Data on July 10, Allianz Chief Advisor El-Erian stated that Japanese Finance Minister Kaori Katayama said, "One of the priorities is to encourage households and pension funds, including the Government Pension Investment Fund, to increase their investment in Japanese financial assets." Her remarks pushed the 10-year JGB yield down by 9 basis points during the Tokyo trading session, and the yen rose by 0.5%. If this signals a shift in Japan's massive investment portfolio—though this remains a major uncertainty—a key question facing global markets is: which overseas holdings might be reduced first?
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