/JAPAN: POV: ### Recent Japanese.....>

US TSYS/SUPPLY: /JAPAN: POV: ### Recent Japanese Min of Fin data and traders'

reports suggest there should be good Japanese demand at next wk's 3/10/30Y

auctions. Japanese accts feel US economy will bump along and Fed might be on

hold, so they are jumping in to buy, including Japanese Post Office (Kampo) and

mega-banks. 

- Japanese accounts did good buying in Tsys last week, as Japanese MOF data

showed net buyers of foreign bonds of Y106.70 (US$9.6B). Japanese accounts sold

Tsys fairly heavily after Nov. 2016 US Trump election win as feared he wld stoke

growth, cut taxes etc. Such Jpn selling in Tsys lasted until Feb 2017. Then the

Trump tax plan etc progress slowed, so in March and April, and esp. since then

including July, Japanese buyers were "particularly active," as one trader said. 

- "They have been buying," said a trader. "I expect them to be in buying until

the bubble pops, and they get rinsed. They continue to find Tsys a very

attractive place to put their money. They are encouraged by the fact that the

Fed is perceived to be on hold. They prefer to buy Tsys when the mkt goes up.

But when Tsys get whacked" by a selloff, "they scurry to the sidelines." (More)