Overseas Capital Returns to Japanese Government Bonds: Investment Signals and Commercial Implications
Introduction: European asset management giant Amundi has recently increased its allocation to Japanese Government Bonds (JGBs) to a slight overweight position—the first time in nearly 30 years. This signals renewed confidence from overseas institutions in the Japanese bond market. With rising yields and evolving policy expectations, Japanese government bonds are again attracting global investor attention. This capital influx is enhancing bond market liquidity and creating new opportunities for corporate financing and government debt management, while reshaping global capital allocation strategies.