Barclays notes that: - Data by investor in.....>

JGBS: Barclays notes that:

- Data by investor in the super-long sector revealed that city banks were

sellers for a third consecutive month in June, logging a net sale of Y10bn.

Insurers, on the other h&, bought a net Y285bn, slowing their purchases somewhat

from May, but still exceeding last fiscal year's pace. We expect the return to

JGBs linked to deteriorating yields on FX-hedged USTs to continue to support the

superlong sector. Trust banks accelerated their net purchases (to Y175bn) &

regional banks switched to buying, albeit marginally (Y21bn). Foreigners

purchased a net Y217bn, remaining buyers for a 5th consecutive month.

- In the long-term sector, city banks turned sellers, selling a net Y407bn.

Regional banks & shinkin banks also logged net sales (Y53bn & Y35bn,

respectively). Meanwhile, foreigners logged a net purchase of Y718bn & trust

banks switched to buying with a net purchase of Y78bn.

- In the short/medium-term sector, foreigners logged a net purchase of Y1.25tn.

Meanwhile, city banks turned sellers with a net sale of Y563bn; trust banks

continued to sell & agricultural institutions sold for a 2nd straight month.