Japanese investors extend foreign bond selling to five weeks

Japanese investors extended their streak of selling foreign bonds to five weeks through October 17. They offloaded 161.6 billion yen of long-term foreign debt during the period.

The selling came as US Treasury yields retreated from 24-year highs, a development that may have prompted some investors to lock in gains or rebalance holdings.

Year-to-date, net disposals of foreign bonds by Japanese investors reached 5.18 trillion yen. That is the highest level for the comparable period since 2022.

Overseas equity buying continued over the same stretch, even as investors reduced their exposure to foreign debt.