Foreign demand increases for higher-yield Japanese government bonds

Foreign investors are increasing their purchases of Japanese government bonds due to rising yields, according to Morgan Stanley. The Bank of Japan's reduced bond purchases and a lack of local institutional buying have pushed yields on 30- and 40-year bonds to new highs, attracting global buyers. This creates opportunities for investors from various regions. Morgan Stanley suggests Japan's Ministry of Finance may need to reduce bond issuance. Despite this, broader central bank policies are expected to lower global interest rates eventually.