Kaitou Macro said that Japan's Finance Minister Katayama Satsuki issued a statement saying that the government will encourage pension funds, including GPIF, to invest more in local financial assets, which will help reverse the sharp rise in bond yields, but this move is by no means a panacea. Abhijit Surya of KITU Macro pointed out that although the market reaction is understandable due to GPIF's sufficient firepower, the fund cannot expand its balance sheet at will. He added that the majority of its domestic bond portfolio is passively invested, and moving more assets to domestic bonds would have huge fiscal costs if stocks were to be sold. Even if the direct pressure on the Japanese treasury bond market abates, it is easy to resurface concerns that the Takaichi Sanae government's attempt to maintain low interest rates through verbal intervention may cause the Bank of Japan to lag behind the situation.

Kaitou Macro said that Japan's Finance Minister Katayama Satsuki issued a statement saying that the government will encourage pension funds, including GPIF, to invest more in local financial assets, which will help reverse the sharp rise in bond yields, but this move is by no means a panacea. Abhijit Surya of KITU Macro pointed out that although the market reaction is understandable due to GPIF's sufficient firepower, the fund cannot expand its balance sheet at will. He added that the majority of its domestic bond portfolio is passively invested, and moving more assets to domestic bonds would have huge fiscal costs if stocks were to be sold. Even if the direct pressure on the Japanese treasury bond market abates, it is easy to resurface concerns that the Takaichi Sanae government's attempt to maintain low interest rates through verbal intervention may cause the Bank of Japan to lag behind the situation.