Rule change to ease Japan life insurers' government bond purchases

What happened: Japan will revise accounting rules so life insurers no longer need to mark down government bond holdings to reflect falling prices, effective in fiscal 2030. Key numbers: Fiscal 2030 effective date. Why it matters: The removal of the impairment requirement is seen supporting demand for government bonds as debt prices fall. Falling bond prices have led to heavy unrealized losses for Japanese insurers.

Japan will revise accounting rules so life insurers no longer need to mark down government bond holdings to reflect falling prices, effective in fiscal 2030.

The removal of the impairment requirement is seen supporting demand for government bonds as debt prices fall. Falling bond prices have led to heavy unrealized losses for Japanese insurers.