Sumitomo Mitsui Financial Group plans to significantly increase its holdings of Japanese government bonds, which may affect the inflow of overseas funds into US Treasury bonds.

PANews reported on January 21 that, according to Bloomberg, Sumitomo Mitsui Financial Group, Japan's second-largest bank, plans to triple its holdings of Japanese government bonds from the current 10.6 trillion yen after yields fall. Global markets head Yuhiro Nagata expects the 10-year Japanese government bond yield to exceed 2.5% by the end of the year, believing its reasonable range to be between 2.5% and 3%. He also predicts the yen may depreciate to 180 against the dollar in the coming years, and the Nikkei 225 index may break through 60,000 points this year. Arthur Hayes commented that if Japanese investors "stay home" due to rising domestic bond yields, they will reduce their financial support for the US Treasury.