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The Japanese Ministry of Finance data.....>

EGB FLOWS
EGB FLOWS: The Japanese Ministry of Finance data for November showed that
Japanese investors sold Y80.8bln of foreign bonds in November, small change
compared to the Y1.43trn sale in October.
- Renuka Fernandez at Nomura noted that the selling was equally spread between
lifers and banks. 
- Country-specific data are one month older and Nomura add "buying of French
sovereigns fell a little in line with seasonals. However, we expect the rotation
into higher yielding/stronger credit EGBs (such as OATs) to continue now that
the hedging cost on USTs is so punitive".
- Fernandez calculates that OATs offer a 1% pick-up to OATS on an FX-hedged
basis compared to 20bp for Treasuries.

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