Japanese investors become net buyers of foreign bonds for the first time in three months

Nov 10 : Japanese investors became net buyers of foreign bonds for the first time in three months in October as Treasury yields eased from early-October two-and-a-half-decade highs, while selloffs in AI-linked technology stocks boosted demand for safe-haven assets.They bought a net 493.9 billion yen ($3.13 bi


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Japanese investors become net buyers of foreign bonds for the first time in three months

Japanese investors become net buyers of foreign bonds for the first time in three months

FILE PHOTO: Japanese 10,000 yen and 1,000 yen banknotes are displayed in this illustration taken October 20, 2026. REUTERS/Kim Kyung-Hoon/Illustration/File Photo

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Nov 10 : Japanese investors became net buyers of foreign bonds for the first time in three months in October as Treasury yields eased from early-October two-and-a-half-decade highs, while selloffs in AI-linked technology stocks boosted demand for safe-haven assets.

They bought a net 493.9 billion yen ($3.13 billion) of foreign bonds in their first monthly net purchase since July, Ministry of Finance data showed on Tuesday. That included 457.2 billion yen in long-term bonds — the most since May — and 36.7 billion yen in short-term bills.

Japanese investors also bought a net 1.46 trillion yen of foreign stocks last month, logging their largest monthly net investment since March.

The US 10-year yield, which reached 5.3645 per cent on October 7 — its highest since April 2002 — fell 36.4 basis points for the month, its sharpest monthly decline since November 2023, as concerns over the Federal Reserve’s policy outlook eased and markets grew wary of the AI boom’s heavy capital spending.

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Despite last month’s net purchases, Japanese investors have still sold a net 4.16 trillion yen of foreign debt holdings this year, fueling speculation of capital shifting from overseas to domestic markets.

Life insurers bought 62.3 billion yen of foreign long-term bonds last month, ending a four-month selling streak. Trust accounts purchased 777.4 billion yen, while banks’ net selling eased to a three-month low of 833.5 billion yen.

A separate Bank of Japan report showed that Japanese investors sold 6.06 trillion yen of US bonds but bought a combined 719.49 billion yen of European bonds in the first nine months of the year.

They purchased 414.99 billion yen of Italian bonds, 376.9 billion yen of Spanish bonds and 265.28 billion yen of German bonds, while selling a net 317.28 billion yen of French bonds.

($1 = 157.9700 yen)

Source: Reuters

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