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Japanese bonds attracted the largest foreign inflow in eight weeks in the week through May 30 as yields eased from multi-decade highs on hopes for a resolution to the Middle East conflict.
Foreigners bought a combined 1.74 trillion yen ($10.88 billion) of bonds in their largest weekly net purchase since 1.99 trillion yen of additions in the week to April 4, data from the Ministry of Finance showed on Thursday.
They bought short-term bills of 494.7 billion yen and long-term bonds of 1.25 trillion yen for a second successive weekly net purchase.
Last week, the 10-year JGB yield eased 15 basis points from a 29-year high of 2.8% reached the prior week. The 10-year yield last stood at 2.645%.
The U.S. and Iran reached an agreement to extend a ceasefire last week, pending final approvals. The Trump administration on Wednesday said Israel and Lebanon agreed to implement a ceasefire to end hostilities, bolstering hopes for a broader deal to end the U.S.-Israeli war on Iran.
Meanwhile, in Japanese equity markets, foreigners sold a net 491.2 billion yen of stocks, ending an eight-week run of net buying.
In parallel, Japanese investors divested a net 1.07 trillion yen of foreign equities, logging a second successive weekly sale.
They also shed 184.8 billion yen of foreign long-term bonds, posting their first weekly net withdrawal in five weeks.
($1 = 159.9300 yen)
(Reporting by Gaurav Dogra; Editing by Harikrishnan Nair)





















