Japanese investors significantly increased their purchases of German government bonds in 2025, reaching the highest level in eight years, according to data released on Monday. Net purchases of German bonds totaled 464 billion yen for the year, the highest since 2017, a sharp reversal from net sales of 880.2 billion yen in 2024.

Additionally, Japanese capital recorded net purchases of French and Italian sovereign bonds for the first time since 2019 and 2020, respectively. In contrast, net buying of US Treasury bonds by Japanese investors fell by 43%, dropping to the lowest level since 2022, which was a year of net sales.