Rumors of Japanese pension fund adjustment debunked BlockBeats reported on July 13th that according to sources familiar with the government's internal discussions, Japan currently has no plans to modify the target asset allocation of the national pension fund, but can increase the scale of local asset investment within the current floating range. Affected by this news, the Japanese yen and Japanese bonds weakened again, with the yen depreciating by 0.4% to 162.36 yen per US dollar at one point. It was not until the Chief Cabinet Secretary, Mr. Kinobara, made a supplementary statement that the decline was slightly eased. At a press conference on Monday, Mr. Kinohara stated that GPIF reviews its investment portfolio every year and will initiate a formal adjustment process if there are substantial changes in the market environment. The Ministry of Health, Labour and Welfare, which is responsible for regulating funds, has no comment on this matter. Japanese Finance Minister Takashi Katayama announced last Friday that the government will introduce supporting measures to encourage pension institutions such as the Government Pension Investment Fund (GPIF) to significantly increase their holdings of domestic financial assets in Japan. This statement quickly drove the Japanese yen and Japanese bonds to strengthen, and the market bet that the world's largest pension fund GPIF would have billions of dollars in funds flowing into the domestic market. As of March this year, GPIF's managed asset size reached 293.6 trillion yen, equivalent to 1.81 trillion US dollars.