Machine Learning

WHY ARE JAPANESE PENSIONS BUYING US BONDS

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Synopsis

Japanese pension funds are scooping up a growing number of U S Treasury bonds, pushing them to the top of the list of foreign holders of U government debt foreign countries held a total of 7.55 trillion U.S. dollars in U.S. treasury securities as of September 2021. Japan held 1.3 trillion U.S. dollars. In 2021, the United States had a total public national debt of 28.43 trillion U.S. dollars https://www.statista.com/statistics/246420/major-foreign-holders-of-us-treasury-debt/ With the worlds largest public debts and a shrinking population, Japans pension funds have looked overseas for yield in recent years, and have been particularly attracted to U bonds, which pay higher returns than similarly rated debt While a small portion of the total, the purchases are a boon to the U Treasury, which has been looking to raise cash to finance record budget deficits, and analysts said they could also help the Federal Reserve as it tries to unwind its bond portfolio The Japanese have been buying U Treasuries f