Why did Japanese investors sell foreign bonds in December?

Japanese investors sold foreign bonds in December primarily due to rising U.S. Treasury yields and profit-taking opportunities.

What was the total investment in foreign bonds by Japanese investors in 2025?

Japanese investors collectively invested approximately 13.59 trillion yen into foreign bonds in 2025.

What drove Japanese investors to sell British bonds in November?

Concerns over the fiscal outlook were the main reason Japanese investors offloaded British bonds in November.

Home / Business and Economy / Japanese Investors Shift Strategy: Bond Sell-off in December

Japanese Investors Shift Strategy: Bond Sell-off in December

13 Jan

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Summary

Japanese investors sold foreign bonds and equities in December.
Total foreign bond investment by Japanese investors reached 13.59 trillion yen in 2025.
Concerns over the fiscal outlook led to significant British bond sales in November.

Japanese Investors Shift Strategy: Bond Sell-off in December

Japanese investors were net sellers of foreign debt and equities during December. This move occurred as U.S. Treasury yields climbed, influencing decisions to divest from bonds. Simultaneously, elevated stock valuations encouraged profit-taking, leading to significant sales of foreign equities. These actions marked a reversal from prior investment trends.

Despite the net selling observed in December, Japanese investors demonstrated a substantial commitment to foreign bonds throughout 2025, collectively investing approximately 13.59 trillion yen. This figure represents a threefold increase compared to the previous year. Similarly, foreign equities saw net purchases totaling 1.71 trillion yen in 2025, ending a two-year period of divestment.