Japan’s rising yields stir debate over growing repatriation risk
Some say markets are underpricing how quickly a rush might emerge as Japanese government bonds become increasingly attractive.
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.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.