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Why Investors Will Still Flock to Negative-Yield Japan Bonds

  • Overseas demand will remain robust this year: Sumitomo Mitsui
  • Short-dated JGBs extremely attractive for foreigners: Daiwa SB
Views Of Tokyo Skyline Ahead Of The Bank Of Japan’s Quarterly Tankan Sentiment Index

Photographer: Tomohiro Ohsumi/Bloomberg

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The return of dovish central banks is putting Japan’s negative-yielding government bonds back on the investment menu for global funds.

Overseas investors bought 638.3 billion yen ($5.8 billion) of Japanese bonds in five days through Feb. 1, the most in three weeks, Ministry of Finance data showed Thursday. In more evidence of buoyant appetite, an auction of 10-year JGBs Tuesday drew the strongest demand in 13 years, followed by an upbeat 30-year sale two days later.