Japanese investors sold the largest amount of overseas bonds since 2024 last month.

Odaily Planet Daily News: Last month, Japanese investors sold the largest amount of overseas bonds since 2024. Market observers are closely monitoring capital flows for signs that rising domestic yields are prompting a return of funds. According to preliminary weekly data released by Japan’s Ministry of Finance on Thursday, Japan’s net sales of overseas bonds in February amounted to 3.42 trillion yen. Another balance of payments report shows this was the largest monthly sale since October 2024. Most of the sales occurred within the week ending February 20. Ayako Sera, a senior market strategist at Sumitomo Mitsui Trust Bank in Tokyo, said that the decline in Japanese government bond prices forced life insurance companies to record impairment losses, and they may be selling foreign bonds to adjust overall profits. Given the rise in domestic yields, demand for foreign bonds may have already slowed. (Jin10)