A Sleepy Corner of Japan’s Bond Market Ignited on Foreign Demand

A Japanese bond futures contract that lay dormant for years is emerging as a popular hedging and positioning tool for overseas investors who are ramping up exposure to Japan’s super-long bonds.

Japan’s 20-year government bond mini futures contract has seen open interest grow to 44,093 this week, up from near zero in July when the Japan Exchange Group worked with market makers to improve liquidity and saw the first trade in three years.