Domestic Money Markets Dominate Weekly International Security Flow Data

There was little in the way of sizeable headline net flows witnessed in the latest round of Japanese weekly international security flow data, although Japanese investors flipped to net buying of foreign bonds after logging 2 consecutive weeks of net sales.

• Looking under the hood of the data revealed that Japanese short-term debt instruments saw the largest round of weekly foreign inflows on record (Y8.0677tn) although this came after the largest ever round of weekly sales 2 weeks prior (Y4.9210tn). The inflows seen in the most recent week were likely aided by foreign participants (namely in the U.S.) exploiting FX-hedged yield pickups available in that particular space (which are attractive when compared to comparable assets' yield levels on offer domestically in the U.S.).

Source: MNI - Market News/Japanese Ministry Of Finance