Allianz chief adviser Mohamed El-Erian said Japan's finance minister Katayama
identified as a priority encouraging households and pensions, including the
Government Pension Investment Fund (GPIF), to raise allocations to Japanese
financial assets. Katayama's comments pushed the 10-year JGB yield down about
9bps and the yen up roughly 0.5% in Tokyo trade. If this marks a reorientation
of Japan's large portfolio—still a significant uncertainty—the immediate market
question is which overseas holdings would be pared first.