Japan Buys Foreign Bonds After Major Central Bank Decisions

The weekly international security flow data from the Japanese MoF revealed that Japanese investors broke a two-week streak of net sales of foreign bonds, with net purchases topping Y1tn last week as Japanese (and global) investors (rightly or wrongly) focused on the ending points for the current tightening cycles across the major global central banks in lieu of the latest Fed, ECB & BoE meetings.

• Elsewhere, Japanese investors shed foreign equities for a second straight week, although the net sale size wasn’t particularly notable.
• International investors were small net buyers of Japanese bonds, while they were incremental net sellers of Japanese equities.