/JAPAN: The latest Japanese Min of Fin......>

US TSYS: /JAPAN: The latest Japanese Min of Fin data on foreign debt buying and

traders' reports suggest there should be good Japanese demand at next wk's US

Tsy 3/10/30Y auctions. Japanese accts feel US economy will bump along and Fed

might be on hold, so they are buying reportedly 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," then they could be hurt like other Tsys holders if there was a

major selloff, he said. "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." (More)