FX.co ★ Japan Swings Back to Foreign Bond Buying With ¥177.6B Turnaround

Japan’s appetite for overseas debt has sharply rebounded, with the latest data showing a substantial shift back into foreign bond purchases.

According to figures updated on 28 January 2026, Japan’s foreign bond buying rose to ¥177.6 billion, reversing a previous position of net sales totaling ¥361.4 billion. The move marks a significant turnaround in cross-border investment flows, suggesting renewed interest among Japanese investors in higher-yielding assets abroad or a tactical repositioning after a period of selling.

The swing from sizeable net selling to moderate net buying could signal changing expectations around global interest rates, currency dynamics, or risk sentiment, and will be closely watched by markets for clues on Japan’s role in international capital flows in the coming weeks.