Asia Centric by Bloomberg Intelligence cover image

A New Era Emerges at the Bank of Japan

Asia Centric by Bloomberg Intelligence

00:00

The Dollar Yen Is Back to 127, 128

Life insurers in Japan are selling a lot of their overseas assets, mainly because the currency hatching cost is just so high. Right now, if you were going to hatch your yen and dollar exposure, you need to pay over 5%. But imagine what they can get, even with a 20 year US treasury, it's 4.18%. So immediately, it just makes no sense for them to hold or even buy any US treasury.

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