Japanese investors recorded a net outflow of ¥1.9784 trillion from foreign bonds in the week ending August 21, reversing a ¥1.1351 trillion inflow the previous week. The swing of more than ¥3 trillion highlights the volatility of cross-border portfolio flows and a rapid shift in sentiment among domestic institutional investors. The Ministry of Finance does not provide a specific reason for the weekly reversal, but changes in U.S. Treasury yields, yen movements, currency-hedging costs and the relative appeal of domestic versus overseas debt are common factors. A sustained reduction in Japanese demand could put upward pressure on global bond yields, particularly U.S. Treasury yields, although one week of data is insufficient to establish a trend. Investors will monitor subsequent releases to determine whether the outflow was a temporary repositioning or the start of a broader shift.