Morgan Stanley MUFG Securities strategists said Katayama’s remarks last Friday could provide short-term support to the yen and sentiment in the Japanese government bond market, calling the comments a form of verbal intervention against yen weakness and volatility in ultra-long JGBs. They estimate a 1 percentage-point increase in Japan’s Government Pension Investment Fund (GPIF) domestic bond allocation would mechanically generate about ¥660 billion of 7–11 year JGB demand and roughly ¥800 billio

Morgan Stanley MUFG Securities strategists said Katayama’s remarks last Friday could provide short-term support to the yen and sentiment in the Japanese government bond market, calling the comments a form of verbal intervention against yen weakness and volatility in ultra-long JGBs. They estimate a 1 percentage-point increase in Japan’s Government Pension Investment Fund (GPIF) domestic bond allocation would mechanically generate about ¥660 billion of 7–11 year JGB demand and roughly ¥800 billion of 11+ year JGB demand, based on GPIF securities-level market-value weights as of end-March 2026. The strategists warned this mechanical flow risk should not be ignored.