The main takeaway from the latest round of....>

JAPAN: The main takeaway from the latest round of weekly Japanese security flows

data is the hefty purchases of foreign bonds by Japanese investors. This

represents the largest amount of purchases in the category since September 2018.

This could be a result of the attractive French 10-Year OAT yields from an FX

hedged perspective for a Japanese investor vs. 30-Year JGBs, as was previously

highlighted in MNI ANALYSIS: Attractive FX-Hedged OAT Yields May Not Attract

Japanese Money (see email at 08:14 GMT 01/11), although that advantage has since

been pared away, with 30-Year JGB yields regaining the upper hand, although this

dynamic had been in play for several weeks so there may be other factors driving

foreign bond buying out of Japan.

- This also goes against the grain of the "typical" repatriation flows that can

be seen into FY-end.

- The large size of the net buying pushed the 4-week cumulative rolling sum of

the measure into positive territory, after it swung into negative territory last

week.

- Chart: http://marketnews-m.objects.xtenit.com/marketnewsintl/JPBonds1801.png