Bloomberg Surveillance · Monday, July 13, 2026
The analyst suggests that a significant shift in Japanese asset allocation, beyond just the GPIF, could influence the US Treasury market. He indicates that a substantial move (10% or more) in allocation could be a game-changer, especially if other North Asian countries follow suit, which would be needed to strengthen Asian currencies against the dollar.
“So we're trying to get a straight answer out of Tokyo. I guess, and I think what happens in Tokyo what matter for the US treasury market as well, given not just Japanese holdings but also broader North Asia holdings.”
“Total Japanese assets are ten times the level of GPIF. If we get a ten percentage point or more move in as allocation there, then that we can start to discuss whether it's a game change or not, especially if those in Korea, Taiwan and China follow onwards as well.”