Modest Net Flows In Latest Weekly International Security Flow Data

The latest round of weekly international security flow data out of Japan revealed flips in terms of the sign in front of the 4 major net flow metrics.

• Japanese investors were net buyers of foreign bonds for the first week since early April, although the 4-week rolling sum of the measure remains comfortably in negative territory.
• Foreign investors flipped to net buying of Japanese bonds after 3 consecutive weeks of net sales.
• Meanwhile Japanese investors sold foreign equities, bringing an end to 4 consecutive weeks of net buying, although net sales were light in absolute terms.
• Finally, foreign investors ended their run of 6 consecutive weeks of net purchases of Japanese equities.
• To reiterate, the net flows observed across the 4 major headline metrics were modest in absolute terms.