The Japan Securities Dealers Association announced on August 20 that in July foreign investors net sold Japanese short- and medium-term government bonds totaling ¥1.28 trillion, the largest scale since July 2006; meanwhile, during the same period, 10-year-and-older government bonds remained net bought at ¥889.8 billion. The main reasons include the yen’s relative weakness and market expectations that the Bank of Japan will accelerate interest-rate hikes. Foreign selling could push up yields on Japanese government bonds, increase yen volatility, and the market is watching the policy direction for September hinted at by Kazuo Ueda and Masayanagi Dan. $USDJPY is for informational purposes only and does not constitute investment advice.