Japanese investors sell foreign bonds for third straight week
Rising Japanese rates are beginning to lure some of the country's vast overseas investments home, marking a notable shift in global capital flows.
Japanese investors halted their third consecutive week of selling foreign bonds, with net outflows of around 503.6 billion yen through October 3. This marked the smallest weekly reduction in the past three weeks, as reported by the Ministry of Finance. The surge in US 10-year Treasury yields to a 24-1/2-year high of 5.3645% and rising domestic returns contributed to the pullback, as investors shifted their focus towards more attractive opportunities at home.
Japan's own 10-year government bond yield climbed to a 30-year high of 3.122%, signaling a growing allure of domestic assets. The trend of Japanese capital flows returning to the country underscores a notable change in global capital dynamics, with the yen potentially benefiting from the outflows.
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.
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