Plenty Of Net Bond Selling In Japanese Weekly International Flow Data

Bond flows dominated the latest batch of weekly international security flow data out of Japan, with Japanese investors net selling foreign bonds at a rate not experienced since ’18 as core global bond markets continued to cheapen on the back of the well-documented hawkish central bank repricing.

• When it comes to Japanese bonds, foreign investors were net sellers, after 2 consecutive weeks of net purchases. A reminder that the pressure observed in the JGB space over the period covered by the latest dataset triggered a pre-emptive move from the BoJ. The Bank defended the top of its permitted 10-Year JGB yield trading band (+0.25%) as the benchmark yield metric came within 2bp of its line in the sand.