The pickup suggests demand from a key domestic buyer base may be stabilizing after months of historic yield turbulence in Japan’s government bond market.
Japanese insurers bought super-long JGBs (Japanese government bonds) in June at the fastest pace in three years, pointing to a rebound in demand from one of the market’s most important long-dated investor groups. The move signals that buying interest may be stabilizing after months of historic yield turbulence, a period that had raised concerns about support for Japan’s longest-maturity government debt.