Global investors are increasingly turning to Japan’s long-dated government bonds, drawn by rising yields and heavy supply, according to Morgan Stanley.
- With the Bank of Japan scaling back bond purchases and local institutions not stepping in to buy, 30- and 40-year JGB yields have reached new highs — creating attractive opportunities for overseas buyers from Canada to Europe to Asia.
- MS suggests the Japanese Ministry of Finance may eventually need to cut back on issuance in response to market signals, though the timing remains uncertain
Foreign demand for Japan’s long bonds rises as yields climb, says Morgan Stanley
