Hi TGM, what you say is true. In fact, I believe 93% of JGB's are owned internally. Moreover, I agree with your comments about Japan being a creditor nation - which is why they have an income surplus referenced in the article. However, all the interesting things in economics occur on the margin. And the marginal change in the JGB demand will come from a shift in the Current Account from Surplus to Deficit. This is what will place downward pressure on JGB demand and cause yields to rise. Already we have seen a significant shrinking of the Current Account Surplus in the past two years. Should it continue - and I believe it will - Japan's ability to maintain insular demand for JGB's is weakened.