Japan investors buy net 493.9 billion yen ($3.1 billion) in foreign bonds in October

Japanese investors bought a net 493.9 billion yen (about $3.1 billion) of foreign bonds in October, Japan’s Finance Ministry figures showed. A net purchase means buying exceeded selling over the month.

The total included 457.2 billion yen (about $2.9 billion) in long-term bonds, the most since May, and 36.7 billion yen (about $232.3 million) in short-term bills.

Trust accounts bought as banks sold

Life insurers ended a four-month selling streak in foreign long-term bonds. Banks continued to sell, though their net selling fell to a three-month low.

For the year through October, Japanese investors remained net sellers of foreign debt, with net sales of 4.16 trillion yen (about $26.3 billion).

Yields eased during October

Reuters linked the return to foreign-bond buying to easing US Treasury yields and selling in technology stocks linked to superintelligence (SI), which it said boosted demand for assets considered safer. A bond’s yield is a measure of its return expressed as a rate.

The US 10-year Treasury yield reached 5.3645% on 7 October, its highest level since April 2002. It fell 36.4 basis points over October, its sharpest monthly decline since November 2023. A basis point is one hundredth of a percentage point.