Shafaqna English– International investors, particularly from Europe, have poured record amounts into Japanese bond funds this year, attracted by the elevated yields. Nevertheless, many remain concerned about further price declines and view the trade as risky.
The significant rise in Japanese government bond yields in recent years reflects structural changes in the country’s economy. Higher inflation has forced the central bank to hike interest rates. Additionally, the Iran war, fiscal deficit concerns, and the yen’s depreciation have added further upward pressure on yields in 2026.
Source: Reuters