Japanese bonds draw biggest foreign inflows in four weeks

2026-03-05 - 08:24

The 10-year Japanese Government Bonds(JGB) yield hit an eight-week low of 2.055% last week as bond prices rallied, but yields have since climbed to 2.15% on Thursday. (Reuters pic) TOKYO: Japanese bonds attracted their largest foreign inflow in four weeks in the week to Feb 28 as elevated yields and renewed pledges of fiscal discipline by Prime Minister Sanae Takaichi drew investors. Foreigners bought a net 2.5 trillion yen (US$15.92 billion) of Japanese bonds during the week, the largest weekly net purchase since 3.21 trillion yen recorded in the week to Jan 31, Japan’s Ministry of Finance data showed on Thursday. The 10-year JGB yield hit an eight-week low of 2.055% last week as bond prices rallied, but yields have since climbed to 2.15% on Thursday. The rise comes as surging oil prices, fuelled by the escalating Middle East conflict, revived inflation concerns. Foreign investors bought a net 1.37 trillion yen worth of long-term Japanese bonds, following a net 1.88 trillion yen purchase the previous week. They also added about 1.14 trillion yen in short-term bonds. Japanese stocks saw roughly 973.9 billion yen worth of net purchases, with foreigners extending their recent buying streak into a 10th successive week. The Nikkei fell as much as 9.6% this week from its record high of 59,332.43 last week, as part of a broader selloff in Asian equities amid an intensifying Middle East war. Japanese investors, meanwhile, bought roughly 100.7 billion yen worth of foreign stocks as they logged a fourth weekly net purchase in five weeks. However, they divested a net 673.1 billion yen worth of long-term foreign bonds in a fourth successive week of net sales.