Skip to content
Subscriber Only

As Japan Dumps Treasuries, It's Piling Into Riskier U.S. Assets

  • Holdings of stocks, company and agency debt exceed $1 trillion
  • High FX hedging costs dim appeal of government-bond yields
Video player cover image
Why Japanese Investors Are Dumping U.S. Treasuries
Updated on

It’s easy to see why Japan has soured on Uncle Sam.

After all, returns on Treasuries have been lousy for years. And the sky-high costs to hedge the dollar’s ups and downs mean Japanese investors can often do better at home -- despite the minuscule yields there.