BREAKING: Japanese investors sold -$1.0 billion in foreign long-term bonds in the week ending October 17th, marking their 5th consecutive weekly sale, the longest such streak in 4 years. Over this period, Japanese investors have sold a cumulative -$22.0 billion in foreign long-term debt securities. Furthermore, the group sold -$1.0 billion in overseas short-term bonds in the week ending October 17th, marking their 2nd weekly sale over the last 3. Year-to-date, sales of foreign debt by Japanese investors are up to -$33.0 billion, the largest outflow over the comparable period since 2022. This also brought 12-month cumulative sales of foreign debt up to -$40.8 billion, the largest such outflow since April 2023. This trend has been particularly driven by Japanese banks, which are increasing their domestic bond purchases amid historically attractive domestic bond yields. The global bond market is experiencing a historic shift in investor demand.