© 1982-2022 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial
STIR

RBC Looking To Enter IRZ2/Z3 Flattener

KRW

1 month USD/KRW Back Sub 1290 ​​

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
Trending Top 5
Topics

Mizuho: Japan Fgn Bond Selling Perspective - Buying Shouldn’t Be Far Away

BONDS
BulletMarketsFixed IncomeBond Market News

Monday saw Mizuho note that “flow data from Japan continues to show net selling of foreign bonds. In Yen terms, the drawdown in cumulative flows is close to the peak seen three times over the past 20 years.”

  • “Selling of U.S. Tsys has been the key driver. However, in contrast to the U.S. Tsy reduction during 2017/18, the latest flows have been much less of a foreign bond rotation, but rather more of a U.S. debt retreat.”
  • “Overseas rates vol. is the primary concern; once the momentum fades there’s reason to expect more net neutral foreign bond flows, especially given the selling we’ve already seen… and this is the market phase we’re coming into. Most Japanese lifers seem to agree that 10-Year U.S. Tsy yields should end the year below 3%. There’s still comfort in JGBs given that domestics generally expect no near-term change in YCC.”
146 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

Monday saw Mizuho note that “flow data from Japan continues to show net selling of foreign bonds. In Yen terms, the drawdown in cumulative flows is close to the peak seen three times over the past 20 years.”

  • “Selling of U.S. Tsys has been the key driver. However, in contrast to the U.S. Tsy reduction during 2017/18, the latest flows have been much less of a foreign bond rotation, but rather more of a U.S. debt retreat.”
  • “Overseas rates vol. is the primary concern; once the momentum fades there’s reason to expect more net neutral foreign bond flows, especially given the selling we’ve already seen… and this is the market phase we’re coming into. Most Japanese lifers seem to agree that 10-Year U.S. Tsy yields should end the year below 3%. There’s still comfort in JGBs given that domestics generally expect no near-term change in YCC.”