The increase in returning Japan's effects to the highest level since 1999 due to financial problems

The high -term revenue of Japanese government bonds has increased to the highest level in a few decades, powered by continuous concern about financial expansion and decline in the demand of major investors. The mortgage yields for 20 years rose for a short period to 2.655% on Thursday, the highest level since 1999. The mortgage return has risen 30 years to 3.18%, and the highest level of the 3.2% of the 3.2% in July approaches. This step comes at a time when investors are preparing to launch a financial motivational package after the ruling coalition was defeated in the Senate election during July, which could lead to an increase in the release of effects, which boosts long -term connections that are already suffering from pressure. Meanwhile, the fear of inflation has led to the weight of high -term bonds, which has increased pressure on Japan’s bank to raise interest rates. A sharp decline in foreign purchases, and investors’ demand for bonds has begun to weaken. The net foreign purchases of bonds owed to more than ten years dropped to 480 billion yen ($ 3.3 billion) in July, according to the Japanese Securities Association data. This is equivalent to the third of the amount recorded in June, which is an indication of the decline in the appetite of foreign investors after their strong purchases earlier this year. Also read: Why is the Japanese bond market of investors’ concerns? The SMBC Nikko Securities in a research note Thursday: “As foreign investors formed the main source of demand for the high -term Japanese government bonds during the first half of 2025, the sharp decline in their net purchases increases the possibility of a disruption in the future of long -term bonding.” Live says the recent increase in open centers of future contracts related to Japanese government bonds reflects the more brave clients’ conviction that the likelihood of increasing interest in October, which is not decided that Governor Oida returns to Japan. ‘