Japanese Investors Continue Net Selling Of Foreign Bonds

Japanese investors recorded a second consecutive week of net selling of foreign bonds despite recent weakness in the JPY, coming as foreign bond prices have generally extended a decline amidst hawkish central bank posturing overseas. The four-week rolling sum remains comfortably in negative territory, with that measure declining for a third straight week.

• Japanese investors also resumed net purchases of foreign stocks, adding to strong net buying seen since mid-April.
• Foreign buying of Japanese bonds flipped into strongly positive territory again after the last reading pointed to marginal outflows, with continued BoJ insistence on sticking with current YCC settings likely supporting the move.
• Foreign investors continued being net sellers of foreign equities for a third week in five, with the net outflow for May-Jun so far (~Y397bn) however paling in comparison to the large inflows seen in the weeks reported for Apr (~Y3,179bn).

  	Latest Week	Previous Week	4-Week Rolling Sum
  Net Weekly Japanese Flows Into Foreign Bonds (Ybn)	- 840.80	- 1,137.70	-976.5
  Net Weekly Japanese Flows Into Foreign Stocks (Ybn)	738.80	- 273.90	737.6
  Net Weekly Foreign Flows Into Japanese Bonds (Ybn)	59.10	- 27.40	1688
  Net Weekly Foreign Flows Into Japanese Stocks (Ybn)	- 122.20	- 12.30	-475.7