Iyogin Holdings Inc., Japan’s top bond‑trading regional bank, resumed buying Japanese government bonds in April, the first JGB purchase since 2016. The bank started with modest ultra‑long issues, testing the $7 trillion market after a decade of abstention, CEO Kenji Miyoshi said from Matsuyama. Iyogin also dominates ship finance, backing more than a quarter of the domestic fleet.

The move contrasts with insurers and foreign investors who are shunning JGBs amid expectations of higher yields from the Bank of Japan’s tightening. Miyoshi projects the BOJ policy rate could reach 1.5% by end‑2025, possibly accelerating to 50‑basis‑point hikes. Iyogin’s securities portfolio totals about ¥1.7 trillion ($10.6 billion), with ¥400 billion in yen bonds and domestic foreign‑bond holdings.

Backed by growth—net earnings rose 40% and shares gained 21% YTD—the bank sees JGBs as a hedge against yen‑interest‑rate risk and a way to diversify beyond its strong foreign‑bond and equity bets, including Nvidia. Miyoshi warned the BOJ must tighten “properly” or risk lagging inflation and a weaker yen, underscoring the strategic shift. Unhedged foreign bonds delivered significant hefty returns as the yen fell sharply since 2022.