TOKYO — Foreign investors, now a significant presence in the market for ultralong-term Japanese government bonds, appear to be anticipating a rise in yields on the back of worsening Japanese finances.
The main investors in ultralong JGBs — those with maturities longer than 10 years — include domestic life insurers and pension funds. Foreign investors are big players as well, though these are believed to be mainly hedge funds making bets to profit from short-term yield fluctuations.
