The Bank of Japan's share of government bonds has fallen to approximately 48%, an eight-year low, while monthly purchases have already decreased by almost half since 2024.
At the same time, foreign investors are also reducing their exposure, to around 12% of the total.
Fewer marginal buyers, more net supply, and a market that is now testing interest rate levels without the same structural support as in the past.
So who's buying them?
why do you care?
Curiosity? If BoJ used to be buying at one level and now are buying at a lower level, and if foreign buyers were buying at one level and are now buying at a lower level, and ifJapanese gov't increases bond issuance, who is picking up the slack? Sounds like it must be domestic buyers...but that surprises me.
good, you don't want the government performing a 49% owngoal while the hodlers of rice futures are still tripping over their own shoelaces