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Westpac: Japanese Buying Remains At Historically High Level

AUSSIE BONDS

Westpac note that "one of the very supportive components of the AU bond demand profile is the ongoing preference for A$ assets from Japan. The past 6-9 months have seen record inflows into the sector, which is perhaps serendipitous given that there has been such a surge in bond issuance from Australia's high-quality issuers in response to the recessionary impact of the pandemic. Many wholesale Japanese hedge their currency risk on a rolling 3m basis. In a yield-starved world, pickups of 88bp and 124bps at the 10yr and 20yr maturities is extremely attractive."

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

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