From Yahoo Finance: 2025-04-21 02:56:00

Foreign investors flocked to long-dated Japanese government bonds in record numbers last month, with $15.49 billion worth of bonds with maturities over 10 years purchased in March. This shift came as concerns over a U.S. recession grew due to President Trump’s escalating tariffs, prompting investors to seek safe havens.

President Trump’s tariff announcements, including a 25% levy on cars and parts, contributed to global market turmoil in April. Meanwhile, local insurers in Japan sold a record 645.8 billion yen of super-long JGBs as they adjusted portfolios at the end of the fiscal year.

Uncertainty in the global trade environment led investors to bet against near-term interest rate hikes by the Bank of Japan, making it more attractive for foreign investors to purchase JGBs. The 30-year JGB yield fluctuated significantly throughout April, hitting a two-decade peak at 2.845% before settling at 2.76% on Monday.

In March, the 30-year JGB yield rose by 17 basis points to 2.52%, reaching a 19-year peak of 2.63% mid-month before decreasing as market volatility increased. The yen stood at 140.72 against the dollar.



Read more at Yahoo Finance: Trump tariff worries spur record overseas demand for JGBs