Japan’s Rising Yields Stir Debate Over Growing Repatriation Risk
Japanese government bond yields near three-decade highs are giving fresh prominence to a long-discussed risk for global investors: the prospect of the nation’s vast pool of overseas capital returning home.
Japanese government bond yields have reached levels not seen in decades, prompting investors to reconsider the potential risk of Japan's large pool of overseas capital repatriating to the country. While there are currently no signs of a mass migration, some financial experts warn that rising JGB yields could accelerate this trend.
Ales Koutny, head of international rates at Vanguard Asset Management, suggests that as domestic yields continue to climb, Japan may increasingly keep more funds within its borders. This shift could have significant implications not only for the yen and Japanese government bonds, but also for U.S. Treasury markets, European bond markets, and overall global funding conditions.
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- Japan’s rising yields stir debate over growing repatriation risk japantimes.co.jp
