Japanese investors' net purchases of US bonds are expected to decrease by 2025, while their net purchases of German bonds have reached the highest level since 2017.

According to data released by Japan on Monday, Japanese investors' purchase of German government bonds in 2025 reached the highest level in eight years. The net purchase of German bonds last year totaled 464 billion yen, the highest since 2017, while in 2024 there was a net sale of 880.2 billion yen. Japanese funds made their first net purchases of French and Italian sovereign bonds since 2019 and 2020, respectively. The net purchase of US government bonds by Japan decreased by 43%, reaching the lowest level since 2022, when there was a net sale.