Japanese asset managers rush to launch bond funds as JGB yields hit 30-year highs

Mizuho and Nomura units are expanding global mandates to capture surging demand for Japanese debt, as the 10-year JGB yield climbs toward its highest level in three decades.

By Handelsavisen Newsroom · Automated 2026-07-07 23:08 UTC · 1 min read

Japanese asset managers are accelerating the launch of new bond funds to meet a sharp increase in global investor demand for Japanese government debt.

Units of major financial institutions, including Mizuho and Nomura, are expanding their mandates to capture the growing appetite for yen-denominated assets as interest rates in Japan continue their upward trajectory.

790% on Monday, marking the sixth consecutive session of gains.

The shift reflects a structural change in the Japanese debt market, where higher interest rates are finally delivering attractive yields to international investors for the first time in years.

This development coincides with a broader resurgence in Japanese fixed-income products, including convertible bonds, which are regaining favor among global portfolios seeking yield in a rising rate environment.

Market data underscores the momentum behind this trend.

The benchmark 10-year Japanese government bond (JGB) yield rose 2 basis points to 2.790% on Monday, marking the sixth consecutive session of gains.