Foreign investors sell Japanese government bonds at the largest scale in three years

```htmlGolden Ten Data reported on July 2 that, due to the weak performance of Japanese government bonds lagging behind most of their global counterparts, overseas investors sold the largest volume of Japanese government bonds in three years during June. According to weekly data from Japan's Ministry of Finance as of June 26, the total capital outflow reached 3.12 trillion yen (19.2 billion USD). Separate monthly data and balance of payments figures show that this was the largest outflow since January 2023. The sell-off comes as the Japanese government bond market faces challenges, including a weakening yen, the Bank of Japan gradually withdrawing from the bond market, and government spending plans, resulting in almost no price change for Japanese government bonds compared to the end of May. However, large-scale redemptions may have intensified selling pressure—official data reveals that Japanese government bonds worth 22.1 trillion yen matured in June. Pepperstone Group research strategist Di Lin Wu stated: "The Bank of Japan is tightening monetary policy while bond supply is increasing. In such circumstances, it is entirely rational for foreign investors to reassess term premium. The era of viewing Japanese government bonds as nearly risk-free, low-volatility assets has come to an end."```