Bonds Continue To Dominate Weekly International Security Flow Data

The latest round of weekly international security flow data revealed that Japanese investors reverted to selling foreign bonds, racking up over Y1.0tn of sales for the third time in four weeks (note that the previous week saw a ~Y450bn round of net purchases). The latest week represented the largest round of net weekly sales of foreign bonds witnessed since February.

• Foreign investors lodged a third consecutive sizeable round of weekly net purchases when it came to Japanese bonds (~Y1.25tn), with the 4-week rolling sum of the measure moving to levels not witnessed since late ’18 in the process.
• Equity flows on both sides of the ledger maintained their respective trends, with the respective net weekly flows operating shy of their recent extremes.