Japanese investors have been increasing their purchases of German sovereign debt, with ¥859.6 billion ($5.6 billion) acquired in September, the highest level since 2018.

This rise reflects a strategic shift as Japanese funds express concerns about the financial stability of France, leading to a continued divestment from French bonds.

Japanese funds have been selling French sovereign notes for five consecutive months, the longest streak since 2022. This trend highlights a clear preference for German bonds as investors seek safer assets in the current economic climate.