Govt may order Japan Post to hold JGBs even after privatization
The Japanese government may ask Japan Post to maintain its current government bond holdings until maturity even after it is privatized, the Asahi Shimbun reported, without citing sources.
The government is also considering adopting legal measures binding Japan Post to manage JGBs as its main investment instrument, the newspaper said.
The moves are aimed at reducing risks of a collapse in Japanese government bond market, which would affect government funding.
This could be caused by the possible sale of government bonds by Japan Post, which now holds some 25 pct of total outstanding JGBs, the paper added.
