Why Is a Japanese Life Insurer Wary on Treasuries?

The video discusses the influence of Japanese investors on US Treasurys, highlighting a record investment in foreign bonds and the impact on US yields. Sumitomo Life, a major Japanese insurer, finds US Treasurys less attractive due to high hedging costs, preferring corporate and mortgage debt. The video also explores international economic factors, such as potential monetary policies from the ECB and Bank of England, affecting US Treasury yields. Despite domestic economic indicators, international dynamics continue to drive US Treasury investments.

What are the implications of the ECB and Bank of England's monetary policies on US Treasury investments?

Why are investors concerned about the inflation rate and its impact on US Treasurys?