Generally Reserved Net International Security Flows Witnessed Last Week

As is the norm, the bond flows provided the highlights in the latest round of weekly international security flow data.

• Japanese investors reverted back to net purchases of foreign bonds, albeit at rather limited levels. 2 of the 3 latest weeks have seen net purchases and have effectively negated the net selling witnessed in the middle of those 3 weeks, in net rolling terms.
• Foreign investors registered net purchases of Japanese bonds for the 4^th time in 5 weeks, even with 10-Year JGB yields tending towards 0 (perhaps another sign that x-ccy basis swaps were once again deployed), reverting from the net sales seen in the previous week. Once again, the weekly net level witnessed wasn't particularly large.
• Overall Japanese outflows weren't too far from neutral last week, while investors bought a net ~Y550bn of Japanese assets based on this dataset.