April JSDA Trading Volume of OTC Bonds

The April JSDA bond trading data highlights a pivot by foreign investors away from flattener positions towards long-term JGBs, while domestic insurers and trust banks absorbed the supply in the super-long sector.

Key Takeaways

• 1.Foreign investors shifted away from 'flattener' positioning, selling super-long JGBs for the first time since 2024 while making massive purchases of long-term JGBs.
• 2.Japanese insurance companies became net buyers of super-long JGBs for the first time in nine months, likely attracted by higher absolute yields.
• 3.Trust banks ramped up JGB purchases to over JPY1.3 trillion, primarily for portfolio rebalancing as global equity markets performed strongly.

Table of Contents

• (1) JGBs
• 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: AGRICULTURAL LENDERS' NET PURCHASES OF MEDIUM-TERM JGBs THE HIGHEST SINCE AUGUST 2013
• (2) Non-JGBs
• Investor Classification

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