Okasan Securities economist Ko Nakayama said that with the Bank of Japan still holding large volumes of Japanese government bonds and foreign investor holdings below 20%, the Japanese government should avoid further expanding its debt. Analysts view a 20% foreign-holding threshold in JGBs as critical; breaching it could trigger sharp JGB yield volatility and weaken market stability. Nakayama said: “This is not only vital for short-term market confidence but also for preserving broader trust in J

Okasan Securities economist Ko Nakayama said that with the Bank of Japan still holding large volumes of Japanese government bonds and foreign investor holdings below 20%, the Japanese government should avoid further expanding its debt. Analysts view a 20% foreign-holding threshold in JGBs as critical; breaching it could trigger sharp JGB yield volatility and weaken market stability. Nakayama said: “This is not only vital for short-term market confidence but also for preserving broader trust in JGBs.”