Japan Offloads Foreign Bonds, International Investors Continue To Sell Japanese Paper

The latest round of weekly Japanese international security flow data from the Japanese MoF revealed a relatively chunky round of net selling of foreign bonds on the part of Japanese investors, coming on the heels of two consecutive weeks of much smaller net purchases, although the net level didn’t get anywhere near the recent extremes.

• Meanwhile, international investors were net sellers of Japanese bonds for the sixth consecutive week, although net flows moderated as the BoJ reaffirmed its ultra-loose policy settings and forward guidance as it looks to foster meaningful wage growth in a bid to generate demand-pull inflation.
• Net flows surrounding equities flipped in opposite directions, with Japanese investors selling foreign equities, breaking a run of six straight weeks of net purchases. This came as international investors reverted to net purchases of Japanese equities.