Japan has a huge government-controlled pension system that is mostly invested in low-yielding government bonds and Japanese equities. It also has $1 trillion in foreign exchange reserves. It would be tempting to use one to boost the other, but that is highly unlikely, says Susumu Kato, chief economist at CLSA in Japan.
ôItÆs taboo for the Japanese government to discuss selling off its dollar reserves. Japan is the single biggest holder of US Treasury bonds...
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