Investing.com - Financial Markets Worldwide

Japanese Investor Flows‏

ByDanske Markets
Published 07/08/2013, 08:14 AM
Updated 05/14/2017, 06:45 AM

In June, Japanese investors continued their position as extensive net sellers of foreign bonds for the second month running. The weekly data has so far not shown any sign of the sell-off in foreign bonds easing through June. In Q1 13, the sell-off appears to have been driven by the need to adjust the share of foreign securities in portfolios in the wake of the markedly weaker JPY. In Q2 13, the sell-off to a larger degree appears to have been driven by concerns about Fed tapering and its impact on global bond yields.

The detailed data - so far only released for May - showed that the sell-off of U.S. bonds by Japanese investors accelerated in May, and were the largest monthly sales recorded since data collection started in 2005. Japanese investors still appear to be net buyers of euro area bonds, although purchases have been scaled down since late 2012. The overall picture is that France and the Netherlands are the preferred countries, and that Japanese investors have so far not returned to the PIIGS countries. In Scandinavia, Japanese investors remain substantial net sellers of Norwegian bonds.

Japanese investors are still expected to return to being net buyers of foreign bonds later this year, although some stabilization in bond yields might be necessary before they get the courage to return. In addition, a review of investment rules for public pension funds in Japan is expected to be concluded later this year and will most likely open up for public pension funds increasing their investment in foreign securities.

To Read the Entire Report Please Click on the pdf File Below.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.