The nation’s major banks posted far bigger net buying of domestic public- and private-sector bonds in September than in the previous month, Japan Securities Dealers Association data showed Monday.
Their net purchases totaled ¥1.278 trillion, a 4.5-fold jump from ¥285.9 billion in August.
For long-term bonds, the major banks logged net buying of ¥1.422 trillion, the biggest since October 2010.
While unloading high-yield issues in the medium-term sector to realize profits toward the Sept. 30 end of the fiscal first half, many banks actively bought long-term bonds to make up for anticipated drops in interest income, an official at a bank-affiliated brokerage said.