Limited Net International Security Flows, But Directional Changes Seen

Net investor flows witnessed in Japan’s latest round of weekly international security flow data were relatively limited in absolute size, but there were some interesting changes in net direction.

• Japanese investors were net sellers of foreign bonds, ending a streak of 3 consecutive weeks of net purchases, as hawkish central bank worry accelerated.
• Japanese investors were also net buyers of foreign equities, ending a streak of 3 consecutive weeks of net selling (buying the latest leg of the dip).
• Foreign investors reverted to net purchases of Japanese bonds after the largest round of weekly net sales since September was observed in the previous week.