Japan Sheds Foreign Bonds, While Offshore Investors Scoop Up Japanese Equities

The latest round of weekly international security flow data from the Japanese MoF revealed the largest round of net weekly selling of foreign bonds on the part of Japanese investors since February, as they recorded a fifth consecutive week of net selling of offshore paper.

• Elsewhere, Japanese investors were net buyers of foreign equities for a fourth consecutive week, registering the largest round of net buying observed since July.
• Foreign investors were net sellers of Japanese bonds for a third consecutive week, although the net selling was rather paltry when compared to levels observed over the two prior weeks, as 10-Year JGB yields operated around the upper end of the BoJ’s permitted YCC boundary, while the Bank has continued to reaffirm its support for its current policy settings.
• Foreign investors broke a run of six straight weeks of net sales when it comes to Japanese equities, recording the largest round of net purchases seen since April in the process.

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