JPY Intraday Comment

Research evidence excerpt

JPY Intraday Comment

Global Markets Research

10 July 2026JPY Intraday Comment

Foreign Exchange - Global

Research AnalystsExpectations rise for an increase in domestic

Global FX Strategyinvestment by GPIF

Yujiro Goto - NSC

FM Katayama’s press conference remarks, toward a GPIF portfolio shift? yujiro.goto@nomura.com

a signal of waning tolerance for JPY depreciation? +81 3 6703 1120

Yusuke Miyairi, CFA - NIplc

• FM Katayama signaled support for encouraging GPIF and other pension funds to yusuke.miyairi@nomura.com

invest more in Japanese financial assets. Rising expectations of a shift from overseas +44 (0) 20 7102 4145

to domestic assets prompted lower JGB yields, higher stocks and stronger JPY.

Tomoki Hideshima - NSC • If GPIF increases domestic bond or stock allocations, it could generate a large-scale tomoki.hideshima@nomura.com

capital reallocation and JPY buying pressure. However, any basic portfolio change +81 3 6703 1427

would require broad government coordination and may not materialize quickly.

Yuki Kodera - NSC • Rising expectations for domestic bond investment by pension funds may help reduce yuki.kodera@nomura.com

JPY depreciation risk, alongside possible MOF FX intervention, and could also signal +81 3 6703 1281

that the Takaichi administration is less tolerant of JPY weakness.

Fig. 1: Portfolio allocation of the GPIF (actual and target) Fig. 2: GPIF's exposures to FX hedged foreign bonds

Source: Nomura, GPIF

Source: GPIF, Nomura

Expectations for increased domestic asset investment by GPIF

FM Katayama said at a post-Cabinet meeting press conference on 10 July that she “would

like to pursue measures to support greater investment in Japanese financial assets by

pension funds, including the GPIF.” She added, “this is not something I can do alone, but I