Japanese investors sold off the largest amount of overseas bonds since 2024 last month (Jinshi Data APP).

Last month, Japanese investors sold off their largest amount of overseas bonds since 2024, and market observers are watching the flow of funds closely for signs that rising domestic yields are triggering a capital repatriation. According to preliminary weekly data released by Japan's Ministry of Finance on Thursday, Japanese investors' net sales of overseas bonds totaled ¥3.42 trillion in February, the largest monthly sale since October 2024, according to another balance of payments report. Most of the sales occurred in the week ending February 20. Ayako Sera, senior market strategist at Sumitomo Mitsui Trust Bank in Tokyo, said that life insurers may be adjusting their overall profits by selling foreign bonds as falling Japanese government bond prices force them to write down impairment losses, and demand for foreign bonds may have slowed given rising domestic yields. (Jinshi)