May JSDA Trading Volume of Over-the-Counter Bonds

The report analyzes May 2026 JSDA trading volume data, highlighting how major Japanese institutional investors reacted to rising JGB yields through dip-buying. Trust banks emerged as the primary net buyers, while insurers turned net sellers of super-long JGBs.

Key Takeaways

• 1.JGB yields rose sharply in May, prompting dip-buying behavior among domestic and overseas investors.
• 2.Trust banks were the largest net buyers of JGBs, significantly increasing holdings across all sectors, particularly super-long JGBs.
• 3.Foreigners continued net buying of JGBs, though reduced their exposure to the medium-term sector amid speculation of BOJ rate hikes.

Table of Contents

• JGBs
• MAJOR BANKS: NET BUYERS RIGHT ACROSS THE CURVE FOR THE FIRST TIME IN TEN MONTHS
• REGIONAL FINANCIAL INSTITUTIONS: CONTINUED TO BUY UP MEDIUM- AND LONG-TERM JGBS
• INSURERS: SWITCHED BACK TO NET SELLERS OF SUPER-LONG JGBS
• TRUST BANKS: BOUGHT UP COUPON-BEARING JGBS TO THE TUNE OF MORE THAN JPY2 TRILLION WITH A PARTICULAR FOCUS ON THE SUPER-LONG SECTOR
• FOREIGNERS: NET BUYERS RIGHT ACROSS THE CURVE, BUT CUT BACK IN THE MEDIUM-TERM SECTOR
• FINANCIAL INSTITUTIONS FOR AGRICULTURE & FORESTRY + OTHERS: AGRICULTURAL LENDERS' INCREASE IN NET SALES OF SUPER-LONG JGBS MAY HAVE REFLECTED FISCAL CONCERNS
• Non-JGBs

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