Foreign investors have been buying super long-term Japanese government bonds for seven consecutive months.

Overseas investors have been buying Japanese super long-term government bonds for the seventh consecutive month, with the lure of high interest rates leading to record high cumulative purchases from January to July. Data from the Japan Securities Dealers Association shows that in July, foreign investors bought 479.5 billion worth of Japanese bonds with a maturity of 10 years or more, marking the longest streak of continuous purchases since May 2022. The net purchase total in the first seven months of this year reached 9.2841 trillion, the highest level for the same period since records began in 2004. "The continued buying by overseas investors has provided some confidence boost," said Ryutaro Kimura, senior bond strategist at Axa Investment Managers. However, he also noted that continued efforts to fill underweight positions in Japanese bonds mean that buying pressure may not be enough to lower interest rates.