Trial now

Gilt/Bund spreads widest since 2019


Large Bund put spread


Big selling hit Futures, on the European cash open

JAPAN: Barclays note that "in Jun, Japanese investors turned buyers of
med/long-term foreign bonds, logging a net purchase of Y1,059bn. Banks & trust
banks bought a net Y591bn & Y55bn, respectively, returning to buying for the
first time in 6 months and 10 months, respectively, while life insurers switched
to selling for the first time in 4 months with a net sale of Y196bn. It appears
that demand spread among a broad range of investors after US long-term yields
reversed course from May, heading gradually lower after failing to stay >3%.
Japanese investors also bought heavily in foreign equities with a net purchase
of Y1,554bn overall, including Y488bn by banks, Y367bn by bank trust accounts
and Y172bn by life insurers - a wide range of investors. Based on weekly data,
Japanese investors sharply accelerated their investment in foreign equities in
the final week of June, logging their largest net purchase under comparable data
since FY01, likely reflecting demand from various investors, as noted above.
Meanwhile, overseas investors continued to sell Japanese equities for a second
consecutive month with a net sale of Y1,003bn, while logging net purchases of
Y4,385bn in short-term bonds and Y445 in medium/long-term bonds."
MNI London Bureau | +44 0203-865-3809 |