May 26, 2022 00:07 GMT
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Bonds once again stole the show in the latest round of Japanese weekly international security flow data.
- Note that Japanese investors lodged their second consecutive week of net purchases of foreign bonds, likely aided by the widening recessionary fears observed across much of the globe, which is drawing questions re: G10 central bank terminal rates. This was the largest round of net weekly purchases lodged since mid-January and also represents the first back-to-back round of weekly net purchases of foreign bonds observed since January.
- Foreign investors were net buyers of Japanese bonds for a second consecutive week, registering the largest round of net weekly purchases seen since March. FX hedging cost-related yield pickup and the BoJ’s continued insistence that it will stick with its current policy settings likely facilitated that particular bid.
- Japanese investors reverted to net buying of foreign equities, registering net purchases for the fifth week in six, while foreign investors reverted to incremental net buying of Japanese equities, registering net purchases for the seventh week in eight.
|Latest Week||Previous Week||4-Week Rolling Sum|
|Net Weekly Japanese Flows Into Foreign Bonds (Ybn)||627.0||373.4||-905.5|
|Net Weekly Japanese Flows Into Foreign Stocks (Ybn)||326.6||-57.4||1400.5|
|Net Weekly Foreign Flows Into Japanese Bonds (Ybn)||1281.6||374.5||1132.7|
|Net Weekly Foreign Flows Into Japanese Stocks (Ybn)||4.1||-345.4||237.0|
Source: MNI - Market News/Bloomberg/Japanese Ministry Of Finance