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

Golden Ten Data reported on March 5 that, according to foreign media, last month Japanese investors sold the largest amount of overseas bonds since 2024. Market observers are closely monitoring capital flows for signs of funds returning to Japan triggered by rising domestic yields. According to preliminary weekly data released by Japan's Ministry of Finance on Thursday, in February, Japanese investors had a net sale of overseas bonds totaling 3.42 trillion yen. Another balance of payments report shows this is the largest monthly sale since October 2024. Most of the sales occurred during the week ending February 20. Ayako Sera, Senior Market Strategist at Tokyo Sumitomo Mitsui Trust Bank, said that as the price of Japanese government bonds fell, life insurance companies were forced to record impairment losses, and they may be adjusting overall profits by selling foreign bonds. Given the rise in domestic yields, demand for foreign bonds may have already slowed.