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April 19 (Reuters) - Life insurers in Japan and Taiwan are shunning Treasuries as benchmark yields languish around five-week lows.
Japan’s Daido Life Insurance said it would consider buying 10-year Treasuries when yields rise to 2%, from around 1.56% currently, while a major Taiwanese insurer said it would buy when yields approach 1.75%.
The benchmark yield rose as high as 1.776% at the end of March for the first time in 14 months, as investors bet that massive fiscal stimulus amid continued monetary easing in the United States would spark faster inflation than the Federal Reserve anticipates.
But this month, the Fed’s insistence that near-term price pressures will be transitory has soothed the market, with the 10-year yield dropping as low as 1.528% last Thursday.
Asian life insurers shun Treasuries as yields judged too low
April 19, 2021
By Kevin Buckland
April 19 (Reuters) – Life insurers in Japan and Taiwan are
shunning Treasuries as benchmark yields languish around
five-week lows.
Japan’s Daido Life Insurance said it would consider buying
10-year Treasuries when yields rise to 2%, from around 1.56%
currently, while a major Taiwanese insurer said it would buy
when yields approach 1.75%.
The benchmark yield rose as high as 1.776% at
the end of March for the first time in 14 months, as investors
bet that massive fiscal stimulus amid continued monetary easing
in the United States would spark faster inflation than the