Japanese asset managers are rolling out new investment trusts tied to government bonds as yields rise to levels that make the market attractive to ordinary investors again. Mitsubishi UFJ Asset Management is joining Daiwa Asset Management and Amova Asset Management in offering funds linked to super-long JGBs, with Japan’s 30-year government bond yielding nearly 4%, above Germany’s roughly 3.6% and close to the 5.2% offered by 30-year U.S. Treasuries. The new products remain small, at no more than 3 billion yen each, but their spread points to renewed life in a debt market that had been heavily shaped by the Bank of Japan’s ultra-loose policy and large-scale bond holdings. Mitsubishi UFJ plans to launch a fund in September focused on 20-year, low-coupon JGBs issued during the BOJ’s easy-money era, betting that investors who hold discounted bonds to maturity can lock in face-value repayment. The push comes as the BOJ reduces its JGB holdings and the government increases issuance, raising the need for new buyers. Some firms are also targeting shorter maturities as investors worry yields could rise further, with the 2-year JGB yield hitting 1.64% on Wednesday, its highest in 31 years, on expectations the BOJ could raise rates as early as September.