The monthly turnaround was led by 457.2 billion yen in long-term debt acquisitions as the 10-year Treasury yield fell 36.4 basis points from a multi-decade high. Concurrently, Japanese funds deployed 1.46 trillion yen into overseas equities, representing their strongest monthly foreign stock purchases since March. Despite these October inflows, net sales of foreign debt remain above four trillion yen year-to-date, reflecting persistent rebalancing pressures.
Key points
Yield relief and technology equity volatility briefly revived cross-border safe-haven dem…: Yield relief and technology equity volatility briefly revived cross-border safe-haven demand among Japanese institutional managers.
Year-to-date outflows of 4.16 trillion yen signal ongoing structural rotation toward dome…: Year-to-date outflows of 4.16 trillion yen signal ongoing structural rotation toward domestic Japanese assets.
Longer-term trends show selective reallocation, with investors cutting U.S. debt while fa…: Longer-term trends show selective reallocation, with investors cutting U.S. debt while favoring Italian, Spanish, and German bonds.
Sources checked by our analysis pipeline: 1
Nov 10 : Japanese investors became net buyers of foreign bonds for the first time in three months in October as Treasury yields eased from early-October two-and-a-half-decade highs, while selloffs in AI-linked technology stocks boosted demand for safe-haven assets.
They bought a net 493.9 billion yen ($3.13 billion) of foreign bonds in their first monthly net purchase since July, Ministry of Finance data showed on Tuesday. That included 457.2 billion yen in long-term bonds — the most since May — and 36.7 billion yen in short-term bills.
Japanese investors also bought a net 1.46 trillion yen of foreign stocks last month, logging their largest monthly net investment since March.
The US 10-year yield, which reached 5.3645 per cent on October 7 — its highest since April 2002 — fell 36.4 basis points for the month, its sharpest monthly decline since November 2023, as concerns over the Federal Reserve's policy outlook eased and markets grew wary of the AI boom's heavy capital spending.
Despite last month's net purchases, Japanese investors have still sold a net 4.16 trillion yen of foreign debt…
Market activity shows Ferrexpo equity facing downward pressure during today's trading session. Current reporting indicates that trading movement remains negative while additional details concerning the slide have not yet emerged. Observers await further updates to understand the specific drivers behind this downward performance.
Regional market participants drove strong momentum across domestic equities, pushing the Jakarta exchange into firmly positive territory by the closing bell. This solid upward push reflects sustained buying interest throughout the daily trading session. The performance demonstrates continued strength for local shares as market activities wrapped up for the day.