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Run Of Japanese Buying Of Offshore Bonds Extends

BONDS

Japanese investors recorded the largest round of net weekly purchases of foreign bonds since May in w/e August 16 (Y1.85tn).

  • 4-week rolling sum of those flows at the highest level since September ’23.
  • Japanese participants bought offshore paper during the early August risk-off move and during the subsequent pullback in core global bond markets.
  • Heightened market expectations surrounding imminent, swift easing cycles at the major DM central banks is probably driving the demand for offshore bonds, particularly with the potential for further BoJ tightening evident.
  • Moves away from cycle lows in the JPY could also be a factor.
Latest WeekPrevious Week4-Week Rolling Sum
Net Weekly Japanese Flows Into Foreign Bonds (Ybn)1854.01539.73376.7
Net Weekly Japanese Flows Into Foreign Stocks (Ybn)353.2-322.91547.1
Net Weekly Foreign Flows Into Japanese Bonds (Ybn)1532.81433.83018.1
Net Weekly Foreign Flows Into Japanese Stocks (Ybn)-47.9521.7-782.8

Source: MNI - Market News/Japanese Ministry Of Finance/Bloomberg

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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