Society

Lure of foreign bonds fades for Japanese investors

Jan 13 (Nikkei) - Japanese investors became less enthusiastic about buying foreign bonds last year on growing concern about rising U.S. Treasury yields.

Japanese investors' net purchases of mid- to long-term foreign bonds nosedived 94.6% on the year to 1.1 trillion yen ($9.9 billion) in 2017, the Finance Ministry said Friday, marking the first annual decline in four years.

Institutional investors such as banks and life insurance companies had actively pursued foreign bonds in search of higher returns, finding few alternatives in Japan, where interest rates remained extremely low.

But the November 2016 election of Donald Trump as U.S. president sent the 10-year Treasury yield shooting up from around 1.8% to almost 2.6% in just over a month, and the yield stayed above 2% throughout 2017. Any investors holding onto Treasurys during the yield surge would have incurred significant losses as prices tumbled.

Man Arrested in Nagano Triple Stabbing

A man has been arrested in connection with the stabbing of three individuals in front of JR Nagano Station in Nagano City, where one person was killed and two others sustained injuries of varying severity.

Child Welfare Centers in Japan Struggle as Staff Resignations Rise

Child consultation centers in Japan are at the forefront of efforts to protect children from abuse and make critical decisions about their care, including whether to return them to their families or place them in alternative arrangements. Despite their vital role, these centers are struggling under the weight of increasing workloads, rising abuse cases, and severe staff shortages, leading to high levels of burnout and resignations among welfare officers.

How Should Japan Navigate the Second Trump Administration?

Japan is facing critical questions about how to navigate its relationship with the United States following the inauguration of Donald Trump as the 47th president.

BOJ Raises Policy Rate to 0.5%

The Bank of Japan (BOJ) has decided to raise its policy interest rate from an annualized 0.25 percent to 0.5 percent. This marks the first rate hike in six months and appears aimed at correcting the historically weak yen.

Severe Rice Shortage Looms in Japan

Japan is facing an unprecedented rice shortage, with recent data highlighting alarming supply-demand imbalances in the domestic market. The Agricultural Newspaper reported on January 10 that the DI (Demand-Supply Index), a measure of rice market balance, reached a record high of 80. This figure indicates a critical shortfall in rice availability, surpassing even last year's levels when supermarket shelves were emptied.

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