Japanese government bonds are becoming harder for global investors to ignore. Record inflows into Japanese bond funds this year show that foreign investors, particularly in Europe, are increasingly willing to look beyond the traditional US fixed-income market as rising Japanese yields create a more attractive investment opportunity.
Japanese bond exchange-traded funds have attracted $1.5 billion in net inflows so far this year, according to Morningstar data released on Tuesday. That is nearly three times the $550 million collected during the whole of 2025.
