Foreign Investors Resume Purchases Of Japanese Bonds; Accelerate Sale Of Japanese Equities

Japanese investors were small net buyers of foreign bonds last week, according to weekly international security flow data, halting a two-week run of relatively limited net selling.

• Japanese investors were also small net buyers of foreign equities, adding to last week’s marginal round of net buying.
• Foreign investors were marginal net buyers of Japanese bonds, resuming their run of net buying prior to last week’s negative print.
• Elsewhere, foreign investors accelerated their net selling of Japanese equities, likely reflecting some worry re: domestic stocks amidst the recent uptick in expectations for rate hikes globally.