Super-long JGB purchases by individual investors are gradually increasing
Key points
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Individuals’ purchases of super-long JGBs have picked up in FY25; while amounts are still small, high yields have bolstered demand amid rising inflation
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Off-the-run bonds trading at deep discounts may be attractive to these investors and could be effective option for those who are able to hold to maturity and seek to avoid exchange rate risk
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We see room for further growth given robust sales of JGBs for individual investors and think market could expand to nonfinancial corporations