ChainThink report: On March 9, Japanese investors made a massive withdrawal from overseas bond markets in February, with the outflow reaching a 16-month high, as falling U.S. Treasury yields and rising Japanese government bond yields enhanced the attractiveness of domestic bonds.

Data from the Ministry of Finance of Japan shows that Japanese investors recorded a net sell-off of ¥3.07 trillion (USD 19.37 billion) in overseas bonds last month, marking the largest single-month net outflow since October 2024, when they sold off ¥6.5 trillion. Specifically, Japanese investors divested ¥3.42 trillion in foreign long-term bonds—a 16-month high—while simultaneously making net purchases of approximately ¥352.1 billion in foreign short-term bonds.

In February, Japanese investors registered a net purchase of ¥642.1 billion in foreign equities for the second consecutive month. Barclays notes this buying spree was primarily driven by demand linked to Japan’s NISA (Non-Taxable Investment Savings Account), a government-backed personal tax-free equity investment scheme designed to channel trillions of yen in household cash into stock market investments.

Another report from the Bank of Japan indicates that in January, Japanese investors made net purchases of ¥279.4 billion in U.S. Treasuries and ¥660.96 billion in European bonds. (Jinshi)