How Japan’s bond rout is turning the tide of global capital
The 3% bond yield raises Tokyo’s borrowing costs and could reverse investment flows that made Japan the largest holder of US Treasuries and a major buyer of global sovereign debt.
Japan's bond yields have recently surpassed a three-decade high, prompting investors to reconsider their overseas holdings. This shift in capital flow is reshaping global bond markets, with Japan's role as a significant buyer of foreign debt diminished. In Tokyo, benchmark Japanese bond yields breaking the 3% barrier have sparked capital to return to Japan, reversing the long-standing trend of funds flowing into global bond markets.
As global bond yields rise, the relative attractiveness of domestic bonds increases for Japanese investors, potentially leading to a shift from overseas assets back into Japanese fixed income.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
