Japan's investors are set to abandon their long-standing love affair with US Treasury bonds in favor of their homegrown government securities, known as JGBs, according to a growing number of fund managers. This shift in sentiment comes as Japan's economy continues to recover from the pandemic, and its government is expected to issue more JGBs to fund its massive stimulus packages. As a result, fund managers are predicting a significant sell-off of US Treasuries, potentially causing a ripple effect in global bond markets. With the US Federal Reserve's decision to raise interest rates also contributing to a decrease in US Treasury yields, Japanese investors may find JGBs more attractive, leading to a potential exodus from the US market.
Fund managers say country’s investors will sell out of US Treasuries to invest in JGBs
