Intriguing RV graphs: Pronounced caution regarding super-long JGBs even vs US/Europe
Key points
- Super-long JGB yields are now at high levels, even compared to other government bond yields in Asia; since start of 2025, 30yr JGB yield has topped comparable government bond yields in Korea, Singapore, and Thailand
- Here, there were accompanying traces of Asian money inflows into super-long JGB market; such expansion of investor base positive for super-long JGB market
- Meanwhile, uncertain at this point whether Asian investors will become stable buyers (replacing domestic investors); low liquidity issue persists
