Japan Could Ask State-Owned Firms to Buy Bonds, Barclays Says
Japan may consider asking government-owned entities to support the nation's bond market if the selloff in longer-dated debt doesn't abate, according to Barclays Plc 's global chair of research.
Firms with significant state influence like Japan Post Holdings Co. and the Government Pension Investment Fund could be 'quietly told' to buy more domestic bonds, Barclays' Ajay Rajadhyaksha said in an interview. While this isn't his base case and may not progress beyond a thought exercise, in theory such a scenario could trigger sales of US Treasuries in order to pay for domestic bonds.
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