ChainThink reports that on March 9, Japanese investors significantly withdrew from overseas bond markets in February, marking the largest outflow in 16 months, as falling U.S. bond yields and rising Japanese bond yields made domestic bonds more attractive.
Data from Japan’s Ministry of Finance shows that Japanese investors net sold ¥3.07 trillion ($19.37 billion) in foreign bonds last month, marking the largest monthly net selling since ¥6.5 trillion was sold in October 2024. Of this, Japanese investors sold ¥3.42 trillion in foreign long-term bonds, the highest in 16 months, while simultaneously net purchasing approximately ¥352.1 billion in foreign short-term bonds.
In February, Japanese investors net purchased ¥642.1 billion in foreign stocks, marking the second consecutive month of net buying. Barclays noted that this buying surge was primarily driven by demand related to Japan’s Individual Savings Account (NISA). NISA is a government-sponsored tax-free stock investment program designed to channel trillions of yen in household cash into equity markets.
Another report from the Bank of Japan showed that in January, Japanese investors net purchased ¥279.4 billion in U.S. Treasuries and ¥660.96 billion in European bonds. (GoldTen)