Note that the latest round of weekly data released by the JPX revealed that foreign investors were net buyers of JGB futures in the week ending 24 June, breaking a string of 3 consecutive weeks of net weekly sales. Still, the 4-week rolling sum of the measure remains comfortably within negative territory. Note that last week’s net bond purchases only accounted for ~33% of the net sales observed over the previous 3 weeks. The net purchases suggest that foreigners started to undertake short covering after the BoJ stood firm against the recent challenge of its YCC parameters (which the foreign investment community clearly participated in). All indications are that the wider foreign investor base remains net short.
Fig. 1: Net Weekly Foreign Investor Flows In JGB Futures (Contracts)
Source: MNI - Market News/JPX/MNI - Market News