Japan investors race to scoop up coupon JGBs as foreign buying slumps
TLT•Japanese investors bought 21.7 trillion yen ($137.17 billion) of coupon-bearing government bonds from April through August, while foreign investors bought 2.8 trillion yen. Domestic purchases reached 89% of the previous fiscal year's total in five months.
1. Domestic buying rises
Japanese investors bought 21.7 trillion yen of coupon-bearing Japanese government bonds from April through August, 89% of the 24.3 trillion yen purchased in all of fiscal 2025. Purchases are on pace to exceed fiscal 2024's 33.9 trillion yen, the highest total in the data set, which goes back to fiscal 2018.
2. Medium-term bonds lead
Domestic investors bought 12.7 trillion yen of medium-term JGBs in the five months, compared with 9.1 trillion yen in all of fiscal 2025. They also bought 3.6 trillion yen of super-long-term bonds, roughly matching the prior fiscal year's total and below the 19 trillion yen peak in fiscal 2021.
3. Foreign buying dwindles
Foreign investors bought 2.8 trillion yen of coupon JGBs from April through August, compared with a record 32.8 trillion yen in fiscal 2025. They were net sellers of medium-term bonds, offloading 1.9 trillion yen after net purchases of 17.4 trillion yen in fiscal 2025.
