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Japan Lodges Most Notable Round Of Offshore Bond Purchases Since November

JAPAN

Weekly international security flow data out of Japan revealed that Japanese investors lodged a fourth consecutive week of net purchases of foreign bonds last week, with the net amount representing the largest round of net buying seen since November. Weekly net buying topped the Y1tn mark for the first time in calendar ’22 in the process.

  • The remaining 3 major flow metrics saw moderations in net flows and no change in direction, with Japanese investors net selling foreign equities for a second straight week, foreign investors net buying Japanese bonds for the third straight week (and also for the seventh time in eight weeks, largely representing short covering after the ultimately failed challenge of the BoJ's YCC parameters in June.), while foreign investors were small net buyers of Japanese equities for a second consecutive week.
Latest WeekPrevious Week4-Week Rolling Sum
Net Weekly Japanese Flows Into Foreign Bonds (Ybn)1152.4829.92132.1
Net Weekly Japanese Flows Into Foreign Stocks (Ybn)-234.8-1036.2-685.1
Net Weekly Foreign Flows Into Japanese Bonds (Ybn)231.31017.42523.0
Net Weekly Foreign Flows Into Japanese Stocks (Ybn)45.561.0283.2
Source: MNI - Market News/Bloomberg/Japanese Ministry Of Finance
Fig. 1: Net Weekly Japanese Flows Into Foreign Bonds (Ybn)

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

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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