Global Banking Worry Triggers Huge Bond Purchases

Bond flows dominated when it came to the latest round of weekly international security flow data provided by the Japanese MoF, with the tumult surrounding the global banking sphere and related central bank repricing at the fore in the week ending 17 March.

• Japanese investors lodged the second largest ever round of net purchases of foreign bonds as a result, with the amount only surpassed by one week of net purchases observed during the initial COVID outbreak.
• Foreign investors recorded the largest ever round of weekly net purchases of Japanese bonds, adding further momentum to post-BoJ short cover.
• On the equity side Japanese investors were small net buyers of international equities, breaking a run of seven straight weeks of net sales. Meanwhile, international investors were net sellers of Japanese equities for a fourth consecutive week, registering the largest round of weekly net sales seen since September of last year in the process.

Source: MNI - Market News/Bloomberg/Japanese Ministry Of Finance