Japanese investors made a significant move this month - in February, there was a record outflow from foreign bonds. Financial data shows that a net sale of approximately 19.4 billion dollars, equivalent to 3.07 trillion yen, occurred. This figure is the largest monthly outflow seen since the 6.5 trillion yen sale in October 2024.

Why such a move? While U.S. bond yields are falling, Japanese bond yields have risen. Investors are clearly returning to Japanese assets. Especially in long-term foreign bonds, a sale of 3.42 trillion yen was observed – a 16-month record. Although there was some buying in short-term bonds, the overall trend is clear: withdrawal from foreign bonds.

Interestingly, during the same period, Japanese investors bought foreign stocks worth 1928374656574839.25T yen. The main factor triggering these purchases is the NISA program – tax-exempt stock investment accounts. The government's goal is to direct household savings into the stock market and attract interest to traditional markets instead of alternative assets like the yen coin. In January, there was a return to U.S. and European bonds. Japan's investment strategy is changing rapidly – such fluctuations are worth monitoring.