Amid rising demand for safe-haven assets triggered by U.S. tariff measures, Japanese ultra-long-term government bonds saw a record net inflow of foreign funds last month. According to the latest data from the Japan Securities Dealers Association, global investors purchased a net 2.18 trillion yen (approximately $15.5 billion) in Japanese government bonds with maturities over 10 years in March, marking a historic high. The total net purchase of bonds across all maturities reached 6.03 trillion yen, the second-highest level since records began in 2004.
Since March, the demand for Japanese government bonds has significantly increased as financial markets experienced volatility due to the tariff policies of the Trump administration. Preliminary weekly data from Japan's Ministry of Finance indicates that foreign capital inflows into the Japanese bond market have remained substantial this month.
In contrast, Japanese local insurance companies recorded a historic net sale of 645.8 billion yen in ultra-long-term bonds in March. Data shows that the yield on 30-year Japanese government bonds rose to its highest level since 2006 in mid-March and continued to climb this month. Factors contributing to this include the Bank of Japan's slowdown in purchasing ultra-long-term bonds and the impact of volatility in the U.S. bond market affecting global bond markets.
