Japanese investors sold a record ¥3.07 trillion ($19.37 billion) in foreign bonds in February, marking the largest outflow in 16 months. This shift was driven by falling U.S. bond yields and rising Japanese bond yields, making domestic bonds more appealing. The Ministry of Finance data revealed that ¥3.42 trillion in foreign long-term bonds were sold, while ¥352.1 billion in foreign short-term bonds were purchased. In contrast, Japanese investors continued to buy foreign stocks, with net purchases reaching ¥642.1 billion, marking the second consecutive month of net buying. This trend was largely influenced by demand from Japan's Individual Savings Account (NISA), a tax-free investment program. Additionally, in January, Japanese investors increased their holdings in U.S. Treasuries and European bonds, purchasing ¥279.4 billion and ¥660.96 billion, respectively.