BlockBeats News, July 13th, according to sources familiar with the government's internal discussions as reported by Reuters, Japan currently has no plans to change the target asset allocation of the national pension fund. However, it may increase the allocation to domestic assets within the existing flexible range.

Following this news, the yen and Japanese government bonds weakened once again. The yen depreciated by 0.4% to 162.36 yen per US dollar before Chief Cabinet Secretary Takehito Yuge's supplementary comments helped to slightly ease the decline. Yuge stated at a Monday press conference that the GPIF reviews its investment portfolio annually and would initiate a formal adjustment process if there is a substantial change in the market environment. The Ministry of Health, Labour, and Welfare, which oversees the fund, declined to comment on the matter.

Japanese Finance Minister Taro Aso stated last Friday that the government would implement supportive measures to encourage government pension funds, including the GPIF, to significantly increase their holdings of Japanese domestic financial assets. This statement quickly led to a strengthening of the yen and Japanese government bonds as the market speculated on a potential inflow of billions of dollars into the domestic market by the world's largest pension fund, the GPIF. As of March this year, the GPIF manages assets worth 293.6 trillion yen, equivalent to $1.81 trillion.