Japanese Investors Foreign Bond Purchases Depend on BOJ Rate Path -- Market Talk

Dow Jones01-14

0634 GMT - Japanese investors purchase of foreign bonds largely depends on the extent of rate increases from the Bank of Japan, say Mizuho strategists Evelyne Gomez-Liechti and ​Shoki Omori in a note. "Stronger expectations of additional rate hikes may see domestic investors continue to pare back foreign bond holdings," they say. "Otherwise, we could see a more proactive stance on foreign assets from Japanese investors." Most Japanese investor groups were net sellers of overseas long-term bonds in December, while Japanese investors were net buyers of short-term overseas debt, according to Japan's finance ministry data. Mizuho sees sales of long-term bonds "as a cautious asset allocation amid FX volatility, key macro events, and lower relative attractiveness of foreign bonds for Japanese investors." (emese.bartha@wsj.com)

(END) Dow Jones Newswires

January 14, 2026 01:34 ET (06:34 GMT)

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