Japan investors snap up U.S. bonds, expecting end of rate hikes

BOJ policy tweak likely to lure money back into yen instruments in 2nd half

20230815N Fed building

The Federal Reserve building in Washington. Japan's investors sold record levels of U.S. bonds in 2022 after interest rate hikes. © Reuters

TAKAHISA TAMURA, Nikkei staff writer

TOKYO -- Japanese investors are pouring money into U.S. bonds, spurred by speculation that the Federal Reserve's interest hikes are about to run their course.

Net purchases of medium- to long-term U.S. debt instruments reached 13.6 trillion yen ($93 billion) during the first half, a record for a six-month period since 2014, according to data from Japan's Finance Ministry.

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