For the fifth straight month Danish investors net purchased both foreign shares and bonds. Foreign investors further increased their portfolio of Danish shares and also net purchased Danish bonds denominated in foreign currency.
Foreign investors increased the ownership share of government bonds to DKK252bn equivalent to 36.6% of the total stock. The increase pushes the ownership share to the highest post-crisis level. Around DKK10bn of Danish treasury bills are now held abroad, which amounts to 79.9% of the total stock. Hence, the majority of treasury bills issued remains in foreign hands.
Investors abroad now hold DKK376bn of DKK-denominated mortgage bonds, which is 15.1% of the total stock. The foreign ownership share of DKK-denominated mortgage bonds rose further in June and is currently at the highest level over the 15-year period of available data.
Around 30% of the stock of bonds with a remaining maturity of less than one year is held abroad, 21% of the stock with a remaining maturity between one and five years, and 20% with a remaining maturity above five years - the latter has increased from around 15% one year ago.
The stock of Danish bonds held abroad is well divided on remaining maturities: DKK270bn has a remaining maturity of less than one year, DKK273bn between one and five years and DKK280bn more than five years - note, the division includes Danish bonds in all currencies.
The popular status of Danish assets abroad is one factor which has added support to DKK over the past couple of years.
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