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Foreign buyers' growing sway in ultralong JGBs raises stability risks

Foreign buyers' growing sway in ultralong JGBs raises stability risks

Nikkei Asia7 hours ago
TOKYO -- The market for ultralong-term Japanese government bonds (JGBs) is becoming increasingly reliant on international investors drawn to relatively low prices and a steep yield curve, raising concerns about potential risks posed to supply and demand stability.
Foreign investors bought 1.5 trillion yen ($10.2 billion) in ultralong JGBs on a net basis in June, according to data released Tuesday by the Japan Securities Dealers Association. This is the third-highest monthly tally in QUICK data going back to 2004, behind only April and March of this year. For the January-June half, foreign investors bought 8.8 trillion yen more in bonds than they sold.
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