Japan retail investors drawn to JGBs with returns at 17-year high

Households play growing role in absorbing supply as institutions hold off on buying

20250730N yen

The coupon on 10-year floating-rate Japanese government bonds for individuals topped 1% in July, its first time in that territory since 2008. (Photo by Akira Kodaka)

YUKA KAWAI and TAKAHISA TAMURA

TOKYO -- Retail investors are emerging as significant players in the market for Japanese government bonds, drawn by coupon rates that have reached their highest point in nearly two decades, even as demand from institutional investors flags.

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