Summary of Finance Minister Katayama’s Press Conference, July 14, 2026

At the post-Cabinet-meeting press conference on July 14, 2026, Finance Minister and Minister of State for Special Missions Katayama expressed views on the tax-related product features of Japanese government bonds and the management of GPIF, a pension fund. At the conference, he answered questions about discussions on diversifying government bond holders and GPIF’s asset composition.

As long-term interest rates reached historical levels, some members of the Liberal Democratic Party argued that inheritance tax on individual government bonds should be exempted, while the Democratic Party for the People submitted a bill to make government bonds eligible for NISA. The questions identified the stable absorption of government bond issuance and diversification of holders as challenges.

The minister explained that many people believe portfolio diversification is beneficial for citizens in a world with interest rates. He then indicated the need, as the issuing authority for government bonds, to make them more attractive and review their product features.

After stating that he was aware of the Democratic Party for the People’s bill, he explained that some members of the Liberal Democratic Party also supported making government bonds eligible for NISA and easing inheritance tax within limits that would not be criticized as favoring the wealthy. Although petitions had also been submitted to the minister, he indicated that the matter had not yet been clearly decided, and said that because NISA concerns the tax system, he would discuss it with Mr. Onodera of the party’s Tax Commission and carefully consider it, including matters requiring further organization.

As the issuing authority for government bonds, he expressed his intention to promptly formulate measures to make them more attractive and review their product features. He said that the responsible department was still considering the matter very earnestly and explained that he wanted to accelerate that consideration.

A reporter asked about the basic portfolio, under which domestic and foreign equities and bonds are each set at 25%. Without confirming the composition ratios themselves, the minister explained that the rules require an appropriate and timely review if the conditions assumed when the portfolio was established or the investment environment change significantly, and indicated that revisions could be made as necessary.

Regarding which specific foreign equities and foreign bonds would be reduced, he said he had nothing particular to add, explaining that GPIF has its own rules and that the Ministry of Health, Labour and Welfare has its own approach, so they would consult closely. He also mentioned the possibility that Japanese yen assets could become more advantageous if the growth strategy is pursued forcefully.

He explained that there had been absolutely no changes to the Japan–United States finance ministers’ joint statement compiled in September 2025. He said that Japan and the United States continued to discuss very closely the agreement set out in the statement: government investment entities such as pension funds would invest overseas for risk-adjusted returns and diversification, and would not target exchange rates for competitive purposes.