Sizeable Flow Observed In Weekly International Security Flow Data

Japanese investors registered another Y1tn+ week of net selling of foreign bonds last week, with participants seemingly happy to book some profit in the wake of the omicron-inspired richening. Granted, the net level of selling wasn’t quite as large as the multi-month high registered in the previous week, but the 4-week rolling sum of the metric represents the largest level of net selling witnessed since mid-March.

• They were also seemingly happy to buy the omicron dip when it came to offshore equity markets, lodging the largest round of weekly net purchases of foreign equities on record (going back to ’01).
• Elsewhere, foreign investors piled into Japanese bonds, with net purchases topping Y2.0tn, printing at the highest level observed since July’s all-time high, in what could have been a case of cross-currency basis swap pickup being deployed.

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