Japanese investors unloaded ¥3.42 trillion ($21.8 billion) in overseas bonds last month, the largest monthly outflow since October 2024, according to Ministry of Finance data. This repatriation surge reflects rising domestic yields prompting investors to shift capital back to yen-denominated assets. Fukoku Mutual Life Insurance and other insurers are actively reducing foreign bond holdings to manage profit impacts from JGB impairments. Ayako Sera at Sumitomo Mitsui Trust Bank notes demand for foreign bonds has likely moderated due to higher yields. The trend intensified in the week ending February 20th, coinciding with a 13-basis-point drop in Japan's 10-year yield—its first monthly decline in eight months. A 30-year JGB auction on Thursday showed improving investor appetite, with bid-cover ratios exceeding the 12-month average, suggesting some stabilization in the bond market.