Japanese Investors Dive Back into Foreign Bonds Amidst Tech Selloff

Japanese investors purchased foreign bonds for the first time in four weeks amidst a surge in U.S. Treasury yields. Data shows net purchases of 566.3 billion yen in long-term bonds. Despite divesting in foreign stocks, Japanese investors were drawn by high overseas yields and a weaker yen.

Japanese investors re-entered the foreign bond market last week, marking their first purchases in four weeks, as rising U.S. Treasury yields and concerns over tech valuations renewed their interest in global investments.

Data from Japan's Ministry of Finance shows a net buying of 566.3 billion yen in foreign long-term bonds and an addition of 258.4 billion yen in short-term bills. In contrast, there was a divestment of 439.5 billion yen in foreign stocks, continuing a pattern of net sales.

The uptick in overseas bond yields and a weakening yen compelled investors to explore international debt markets despite significant outflows in Japanese equities, notably a 347.3 billion yen withdrawal. This reflects broader market trends, as indicated by the Nikkei 225's recent downturn.

(With inputs from agencies.)