Overseas Investors Sell ¥81.3 Billion of Japan Super-Long Bonds, First Outflow Since Dec. 2024
Updated
Updated · Bloomberg · May 20
Overseas Investors Sell ¥81.3 Billion of Japan Super-Long Bonds, First Outflow Since Dec. 2024
1 articles · Updated · Bloomberg · May 20
¥81.3 billion in net sales of Japanese government bonds with maturities above 10 years marked the first foreign outflow from the super-long segment since December 2024.
April’s selling reflected market unease over Japan’s inflation outlook and the prospect of increased fiscal spending, pressures that have weighed on demand for longer-dated debt.
Japan Securities Dealers Association data released Wednesday showed overseas investors turned net sellers after more than a year without a monthly outflow in the sector.
The shift points to rising sensitivity in Japan’s bond market to inflation and budget risks, especially at the long end of the curve.
As foreign investors exit, could Japan's colossal debt ignite the next global financial crisis?
Can Japan's central bank fight inflation without collapsing its massive bond market?