Japanese investors' overweight French bonds poses sell-off risk

Japanese investors hold French government bonds significantly above benchmark index weights, raising the risk of a fresh selling wave that could exacerbate the ongoing decline in French OATs. The report from Bloomberg, relayed by Dagens Industri, highlights a potential forced or strategic rebalancing trigger. This matters because Japanese investors are major holders of French debt, and their selling could amplify yield spikes and stress in eurozone sovereign markets.