May's preliminary BoP data revealed that......>

JAPAN: May's preliminary BoP data revealed that Japanese investors were happy to

sell French OATs (to the tune of Y658.9bn on a net basis) for a second straight

month (vs. Y1.8651tn net selling in April), after net purchases were lodged

during the first three months of the year, likely reflecting some exiting of

positions on the back of the move lower in yields (especially given the

FX-hedged yield dynamics). It is also worth remembering that 10-Year OAT's have

recorded a fresh all-time low in recent sessions, moving into negative territory

for the first time. Looking at total flows this calendar year, Japanese

investors remain healthy buyers of French paper, and have purchased a net

Y2.2235tn worth of OATs

- Japanese investors also flipped to net buying of German sovereign paper for

the first month in 3.