Japanese investors have made net foreign bond sales of about 5.08 trillion yen so far this year, the most since 2022. (EPA Images pic)

BENGALURU: Japanese investors pulled back from foreign bonds for a third straight week through Oct 3, as surging US Treasury yields and rising returns at home sapped appetite for overseas debt.

They sold foreign debt worth a net 503.6 billion yen (US$3.19 billion), although this was the smallest weekly total in the past three weeks, data from the Ministry of Finance showed.

The US 10-year Treasury yield hit a 24-1/2-year high of 5.3645% on Wednesday, amid concerns over inflation and government debt. Japan's 10-year government bond yield also reached a 30-year high of 3.122% earlier this week.