Foreign capital honeymoon period comes to an end! Institutions accelerate withdrawal from Japanese government bonds, "BOJ slow hawk + ultra loose fiscal policy" triggers confidence crisis.

According to the Wisdom Finance APP, after a brief return of capital, top global bond fund managers are once again fleeing the Japanese government bond (JGB) market at an alarming rate. Despite the Bank of Japan's expected announcement of a rate hike at its monetary policy meeting this Tuesday (June 16) and the fact that Japanese government bond yields have risen to their highest levels in decades, this has not been enough to keep pace with the outflow of overseas smart money. The latest official data shows that in April, overseas investors sold more Japanese ultra-long-term government bonds than they bought for the first time since 2024.