April JSDA Trading Volume of Over the Counter Bonds

Mizuho analysis of April JSDA data shows foreigners unwinding JGB flattener positions while domestic insurers and trust banks increased purchases amid rising yields.

Key Takeaways

• 1.Foreign investors likely unwound 'flattener' positions in April, selling super-long JGBs while making large net purchases of long-term JGBs due to inflation and fiscal concerns.
• 2.Domestic insurers returned as net buyers of super-long JGBs for the first time since July 2025, attracted by higher absolute yield levels.
• 3.Trust banks ramped up JGB purchases to JPY1.33 trillion, likely for portfolio rebalancing as global equity markets performed strongly.

Table of Contents

• (1) JGBs
• FOREIGN INVESTORS TILTING AWAY FROM FLATTENERS?
• 1) MAJOR BANKS: BOUGHT UP MEDIUM-TERM JGBS FOR THE FIRST TIME SINCE OCTOBER 2025
• 2) REGIONAL FINANCIAL INSTITUTIONS: NET BUYERS RIGHT ACROSS THE CURVE FOR THE FIRST TIME IN FIVE MONTHS
• 3) INSURERS: BOUGHT UP SUPER-LONG JGBs FOR THE FIRST TIME IN NINE MONTHS
• 4) TRUST BANKS: NET PURCHASES OF COUPON-BEARING JGBS EXCEEDED JPY1 TRILLION WITH THE SUPER-LONG SECTOR MOST HEAVILY BOUGHT
• 5) FOREIGNERS: NET PURCHASES OF COUPON-BEARING JGBS STILL EXCEEDED JPY1 TRILLION BUT WERE WELL DOWN FROM MARCH
• 6) FINANCIAL INSTITUTIONS FOR AGRICULTURE & FORESTRY + OTHERS
• (2) Non-JGBs
• Investor Classification
• Important Disclosure Information
• Analyst Certification
• Disclaimer

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