Nikkei report doing the rounds saying that....>

JAPAN: Nikkei report doing the rounds saying that the Japanese Ministry of

Finance (MOF) are seeking to broaden investor base in JGB's, targeting foreign

investors, who currently hold around 10.8% of outstanding Japanese debt (bonds

and bills). The MOF are holding a number of one on one meetings with potential

buyers in order to facilitate this according to the Nikkei. The article cites an

87% rise in MOF meetings with foreign investors in 2016 vs 2015.

- The decline in foreign participation in JGB's is evident, from Jan-Aug 2017

flow data shows that Foreign investors bought a net Y2.898tln of Japanese bonds,

compared to Y4.848tln in 2016 and Y4.578tln in 2015. The MOF August newsletter

shows that long term and super long term JGB purchases by foreigners have

suffered in 2017 while bill sales have been on a rising trend. Foreigners own

around 51.9% of T-Bills, and only 5.8% of JGB's.

- The BoJ will at some point need to exit easy monetary policy and bond buying,

at this point demand could become an issue as the BOJ currently own around 40%

of bonds on issue, so the MOF could be looking to secure the sustainability of

the JGB market.