[Japanese Government Bond Yields Surge, Analysts Suggest GPIF May Consider Increasing Domestic Bond Allocation Ratio] Reported by Golden Finance, on August 31, Japanese government bond yields surged significantly. Analysts believe that it may be reasonable for the Government Pension Investment Fund (GPIF) to increase its domestic bond allocation target in the future. Currently, GPIF's domestic bond allocation target stands at 25%, but this proportion could potentially be raised to seek higher returns. From April to June this year, GPIF has recorded losses in domestic bond investments for seven consecutive quarters. As Japan's bond market experienced a sharp decline, the benchmark 10-year Japanese government bond yield briefly approached a 30-year high of 3%, leading to the aforementioned losses. However, analysts suggest that this round of sharp increases in bond yields may have pushed yields to levels attractive to investors. Koji Okuda, an executive researcher at Dai-ichi Life Research Institute, stated: "When rising yields improve the expected returns of domestic bonds, it is reasonable to consider adjusting the asset allocation ratio." As of the end of June, GPIF managed assets totaling approximately ¥318 trillion (around $2 trillion). This implies that theoretically, every 1 percentage point adjustment in the allocation ratio could correspond to a capital flow exceeding ¥3 trillion. Koji Okuda further noted that after GPIF evaluates expected returns, risks, and other factors under various economic scenarios, "raising the domestic bond allocation ratio to 30% to 35% is worth considering." (Jin10)