FX.co ★ Japan’s Foreign Bond Selling Slows Sharply, Net Outflows Narrow to ¥824.0B

Japan’s appetite for foreign bonds showed signs of stabilizing, with the latest data indicating a significantly smaller net outflow. According to figures updated on 02 September 2026, Japan’s foreign bond buying balance stood at -¥824.0 billion, a marked improvement from the previous reading of -¥1,976.8 billion.

The shift suggests that while Japanese investors continued to be net sellers of overseas debt, the pace of divestment has eased considerably. A narrower negative balance indicates reduced selling pressure on foreign bonds compared with the prior period, a development that may reflect changing yield differentials, currency considerations, or a more cautious stance toward reallocating portfolios.

Market participants will be watching upcoming data closely to see whether this moderation in outflows continues, as sustained stabilization could influence both global bond markets and the yen’s performance. For now, the latest figures point to a notable cooling in Japan’s recent wave of foreign bond selling.